Japan Inflation Rate Edges Down to 1.2% YoY

Japan's annual inflation rate edged down to 1.2 percent in September 2018 from 1.3 percent in the previous month, mainly due to lower prices of food. Still, it is the second-highest figure in the last seven months.

In September, prices of food increased by 1.8 percent from a year earlier, easing from a 2.1 percent rise in the previous month. Cost slowed mainly for meals outside the home (1 percent from 1.1 percent in August); fish & seafood products (1.9 percent from 4.9 percent), of which fresh fish & seafood (0.4 percent from 5.8 percent); dairy products & eggs (3.1 percent from 3.3 percent) and vegetables & seaweeds (8.1 percent from 11.3 percent), of which fresh vegetables (10.4 percent from 15.4 percent).

Additionally, prices went up at a softer pace for culture and recreation (1 percent from 1.6 percent), namely recreational services (1.3 percent from 2.7 percent). On the other hand, cost advanced faster for miscellaneous goods and services (0.2 percent from 0.1 percent) and rebounded for transportation and communication (2.1 percent from 2 percent); fuel, electricity & water (3.7 percent from 3.4 percent) and clothing and footwear (0.1 percent from -0.1 percent). At the same time, inflation was steady for health (1.1 percent, the same as in August) and education (0.5 percent) while it continued to decline for housing (-0.1 percent, the same as in August) and furniture and household utensils (-0.9 percent from -1.1 percent).

The goods index rose 2.1 percent, whereas the services index edged up 0.2 percent.

Core inflation rate, which excludes fresh food, edged up to 1 percent from 0.9 percent in the previous month and in line with expectations. It marked the highest figure since February.

On a monthly basis, consumer prices remained unchanged in September, after a 0.5 percent rise in August and following four straight positive prints. 

Japan Inflation Rate Edges Down to 1.2% YoY

Statistics Japan | Mario | mario@tradingeconomics.com
10/19/2018 8:42:26 AM