Japan Inflation Rate Steady For 3rd Month At 0.4%

Consumer prices in Japan rose 0.4 percent year-on-year in June of 2017, the same as in the prior two months and matching market consensus. Food inflation was steady while cost of transport and housing declined.

In June, prices of food increased by 0.8 percent from a year earlier, the same as in May, namely, fresh food (0.5 percent from 0.4 percent), fish and seafood (5.5 percent from 5.9 percent) and fresh fruits (1.3 percent from -4.1 percent). In addition, prices fell further for fresh vegetables (-4.0 percent from -1.3 percent).

Meantime, prices increased more than in a month earlier for fuel, light and water charges (3.5 percent from 2.2 percent in May), mainly due to higher electricity cost (4.9 percent from 2.5 percent). Also, cost of clothing and footwear rose at a faster 0.2 percent (from 0.1 percent). Cost went up less than in a month earlier for education (0.4 percent from 0.6 percent) and was flat for medical care (from 0.3 percent). 

Cost fell for: housing (-0.2 percent from -0.2 percent), furniture and household utensils (-0.8 percent from -1.1 percent), transport & communication (-0.1 percent from 0.3 percent), culture and recreation (-0.1 percent from 0.6 percent) and miscellaneous goods and services (-0.1 percent from 0.1 percent). 

Core consumer prices, which exclude fresh food, went up 0.4 percent on the year, unchanged from the preceding month's reading  and in line with market estimates. The figure remained at its highest level since March of 2015.

On a monthly basis, consumer prices were flat, the same as in a month earlier.

In Tokyo, consumer prices rose 0.1 percent in July, compared to a flat reading in a month earlier and in line with estimates. Core consumer prices, which exclude fresh food, increased 0.2 percent and above consensus of a 0.1 percent rise.

Statistics Japan l Rida Husna | rida@tradingeconomics.com
7/28/2017 4:48:37 AM