Japan CPI Falls for 6h Month

Consumer prices in Japan dropped by 0.5 percent year-on-year in August of 2016, following a 0.4 percent fall in the previous three months and in line with market expectations. It was the sixth straight month of decline and the fastest fall since April 2013, as cost of housing and transport fell further while prices of food rose at a slower pace.

Year-on-year, cost declined for: housing (-0.1 percent in August from -0.1 in July); fuel, light and water charges (-7.2 percent from -7.7 percent), furniture and household utensils (-1.2 percent from -0.8 percent) and transport and communication (-2.3 percent from -2.6 percent). In contrast, prices rose for: food (+0.6 percent from +1.1 percent), clothes and footwear (+2.4 percent from +2.4 percent), medical care (+0.9 percent from +0.9 percent), education (+1.6 percent from +1.6 percent), culture and recreation (+0.4 percent from +0.8 percent) and miscellaneous goods and services (+0.6 percent from +0.7 percent).

Core consumer prices declined by 0.5 percent from a year earlier, the same pace as in July. It was the sixth consecutive month of fall and the fastest drop since March 2013 while market expected a 0.4 percent decrease. The so-called core-core consumer prices, which excludes food and energy prices rose 0.2 percent year-on-year, compared to a 0.3 percent rise in June. 

On a monthly basis, consumer prices remained unchanged, following a 0.2 percent decline in the previous two months.

In Tokyo, consumer prices dropped by 0.5 percent year-on-year in September, the same as in August. Core consumer prices, which exclude fresh food, fell 0.5 percent from a year earlier, following a 0.4 percent drop in a month earlier while market estimates of a 0.4 percent drop.

Japan CPI Falls for 6h Month

Statistics Japan l Rida Husna | rida@tradingeconomics.com
9/30/2016 12:43:50 AM