Japan Inflation Rate Steady in November


Consumer prices in Japan rose 0.3 percent year-on-year in November of 2015, the same pace as in the previous month and in line with market expectations. Prices of food eased while cost of fuel dropped at a slower pace. Core consumer prices also increased for the first time since July.

Year-on-year, upward prices pressure came from: food (+2.9 percent in November from +3.4 percent in October), furniture and household utensils (+2.1 percent from +1.9 percent), clothes and footwear (+1.8 percent from +1.7 percent), medical care (+0.7 percent from +0.6 percent) and culture & recreation (+2.5 percent from +2.0 percent). In contrast, downward prices pressure came from fuel, light and water charges (-6.8 percent from -7.0 percent) and transportation & communication (-2.8 percent from -3.3 percent). While prices remained unchanged for housing, cost were steady for education (+1.5 percent) and miscellaneous (+0.7 percent).  

Core consumer prices, which excludes fresh food, rose 0.1 percent year-on-year, the first increase in five months. The so-called core-core inflation, which excludes food and energy prices, rose 0.9 percent, accelerating from 0.7 percent increase in the preceding month.

On a monthly basis, consumer prices declined 0.3 percent, following a 0.1 percent drop in October.

In Tokyo, consumer prices remained unchanged from a year earlier in December, as compared to a 0.2 percent rise in November. Core consumer prices rose 0.1 percent, after remaining unchanged in a month earlier. 

Statistics Bureau of Japan l Rida Husna | rida@tradingeconomics.com
12/25/2015 3:03:16 AM