Japanese Inflation Rate Rises Further in August

In August, Japan's consumer prices were up to 0.9 percent, the third straight month of rises and the fastest increase since October of 2008. The speed up is broadly driven by rising costs of oil imports.

The largest upward pressure came from fuel, light and water charges, increasing 6.0 percent. Transportation (3.1 percent), clothes and footwear (0.8 percent), education (0.5 percent) and food prices (0.5 percent) were also up. Price decreases were reported for furniture and household utensils (-1.7 percent), culture and recreation (-0.8 percent), medical care (-0.5 percent) and housing (-0.4 percent). 

Compared to the previous month, prices of clothes and footwear (-2.1 percent), furniture and household utensils (-0.8 percent) and medical care (-0.1 percent) decreased. The biggest gains were registered for culture and recreation (1.7 percent), transportation and communication (1.0 percent) and fuel, light and water charges (0.5 percent).

In August, core inflation, which excludes both food and energy, was up 0.8 percent on the year and up 0.1 percent compared to July. Annual core inflation increased from 0.7 percent registered in July and rose at the fastest pace since November of 2008.

Japanese Inflation Rate Rises Further in August

Nuno Fontes | nuno@tradingeconomics.com
9/27/2013 9:08:16 AM