Japan Inflation Rate Steady in August


Consumer prices in Japan rose 0.2 percent year-on-year in August of 2015, the same pace as in the previous month and beating market consensus for a drop. While prices of food, furniture, clothing and leisure activities rose at a faster pace, cost of energy and communication fell further.

Year-on-year, upward pressures came from: cost of food (+ 2.7 percent), furniture and household utensils (+1.6 percent), clothing and footwear (+1.7 percent), medical care (+0.8 percent), education (+1.4 percent), culture and recreation (+1.6 percent) and miscellaneous (+0.8 percent) and housing (+0.0 percent).

In contrast, prices of fuel, light and water charges recorded the highest decrease (-5.9 percent) and transportation and communication (-2.7 percent).

Core consumer prices including oil products but excluding fresh food rose dropped 0.1 percent year-on-year in August, after remaining unchanged a month earlier. It is the first year-on-year drop since April of 2013, when BoJ launched its massive asset-buying program. The so-called core-core inflation which excludes food and energy prices rose 0.8 percent, after registering a 0.6 percent rise in July.

On a monthly basis, the inflation rate rose to 0.2 percent in August from a 0.1 percent decline in the previous month.

In Tokyo, consumer prices dropped 0.1 percent year-on-year in September, following a 0.1 percent rise in August. Core consumer prices fell 0.2 percent in September, following a 0.1 percent drop in a month earlier. Monthly consumer prices remained unchanged, following a 0.2 percent rise in the previous month.

Japan Inflation Rate Steady in August


Statistics Bureau of Japan l Rida Husna | rida@tradingeconomics.com
9/25/2015 10:50:19 AM