Japan CPI Falls for 3rd Month

Consumer prices in Japan dropped by 0.4 percent year-on-year in May of 2016, compared to a 0.3 percent fall in April and matching market expectations. It was the third straight month of decline as prices of food eased while cost of housing and transport declined.

Year-on-year, cost declined for: housing (-0.1 percent in May from remaining unchanged in April); fuel, light and water charges (-9.0 percent from -9.1 percent) and transport and communication (-2.7 percent from -2.5 percent). In contrast, prices rose for: food (+0.9 percent from +1.3 percent), furniture and household utensils (+0.4 percent from +0.1 percent), clothes and footwear (+2.2 percent from +2.3 percent), medical care (+0.5 percent from +0.6 percent), education (+1.4 percent from +1.4 percent), culture and recreation (+2.0 percent from +2.1 percent) and miscellaneous goods and services (+1.0 percent from +1.1 percent).

Core consumer prices fell by 0.4 percent from a year earlier in May, following a 0.3 percent decline in April and in line with market consensus. The so-called core-core consumer prices, which excludes food and energy prices rose 0.6 percent year-on-year, compared to a 0.7 percent rise in April. 

On a monthly basis, consumer prices rose 0.1 percent, compared to a 0.2 percent increase in the previous month.

In Tokyo, consumer prices dropped by 0.5 percent year-on-year in June, the same as in May. Core consumer prices, which exclude fresh food, fell 0.5 percent from a year earlier, following a 0.5 percent drop in the preceding month.

Japan CPI Falls for 3rd Month

Statistics Bureau of Japan l Rida Husna | rida@tradingeconomics.com
7/1/2016 1:10:44 AM