Japan CPI Falls for 4th Month

Consumer prices in Japan dropped by 0.4 percent year-on-year in June of 2016, the same as in May and matching market expectations. It was the 4th straight month of decline, as prices of food increased at a faster pace while cost of housing declined further and cost of transport fell less than in the preceding month.

Year-on-year, cost declined for: housing (-0.1 percent in July from -0.1 in June); fuel, light and water charges (-8.7 percent from -9.0 percent) and transport and communication (-2.4 percent from -2.7 percent). In contrast, prices rose for: food (+1.1 percent from +0.9 percent), clothes and footwear (+2.0 percent from +2.2 percent), medical care (+0.6 percent from +0.5 percent), education (+1.4 percent from +1.4 percent), culture and recreation (+1.1 percent from +2.0 percent) and miscellaneous goods and services (+0.9 percent from +1.0 percent).

Core consumer prices fell 0.5 percent from a year earlier, following a 0.4 percent decline in May, while market estimates of a 0.4 percent decrease. It was the deepest drop since March 2013. The so-called core-core consumer prices, which excludes food and energy prices rose 0.4 percent year-on-year, compared to a 0.6 percent rise in May. 

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

In Tokyo, consumer prices dropped by 0.4 percent year-on-year in July, compared to a 0.5 percent fall in June. Core consumer prices, which exclude fresh food, fell 0.4 percent from a year earlier, following a 0.5 percent drop in the preceding month.

Japan CPI Falls for 4th Month

Statistics Bureau of Japan l Rida Husna | rida@tradingeconomics.com
7/29/2016 1:17:19 AM