Japan CPI Falls for 7th Month

Consumer prices in Japan dropped by 0.5 percent year-on-year in September of 2016, the same pace as in August and in line with market consensus. It was the seventh straight month of decline, as cost of housing and transport fell while food inflation was steady.

Year-on-year, cost declined for: housing (-0.1 percent in September from -0.1 in August); fuel, light and water charges (-6.2 percent from -7.2 percent), furniture and household utensils (-1.5 percent from -1.2 percent) and transport and communication (-2.1 percent from -2.3 percent). In contrast, prices rose for: food (+0.6 percent from +0.6 percent), clothes and footwear (+1.5 percent from +2.4 percent), medical care (+1.0 percent from +0.9 percent), education (+1.5 percent from +1.6 percent), culture and recreation (+0.3 percent from +0.4 percent) and miscellaneous goods and services (+0.6 percent from +0.6 percent).

Core consumer prices also fell 0.5 percent, similar to August's figure. It was the seventh consecutive month of drop, matching estimates. The so-called core-core consumer prices, which excludes food and energy price were flat on the year on the year, following a 0.2 percent rise in a month earlier.

On a monthly basis, consumer prices rose 0.2 percent, after remaining unchanged in August.

In Tokyo, consumer prices rose 0.1 percent year-on-year in October, following a 0.5 percent fall in September while market expected a 0.5 percent decline. Core consumer prices, which exclude fresh food, went up 0.1 percent from a year earlier, following a 0.5 percent drop in a month earlier and beating estimates of a 0.5 percent drop. 

Japan CPI Falls for 7th Month

Statistics Japan l Rida Husna | rida@tradingeconomics.com
10/28/2016 12:08:24 AM