Japan Inflation Rate at 35-Month High of 1.5% in February


Consumer prices in Japan rose by 1.5 percent year-on-year in February of 2018, after a 1.4 percent gain in the prior month while markets estimated 1.7 percent. It is the highest inflation rate since March 2015, due to a jump in cost of transport and a further increase in cost of food.

In February, prices of food increased by 3 percent year-on-year, following a 3.2 percent rise in January, namely fresh food (12.4 percent from 12.5 percent), fish and seafood (4.3 percent from 5.2 percent) and fresh fruits (5.9 percent from 4.4 percent). Meantime, prices fell for dairy product and eggs (-0.3 percent from a flat reading in a month earlier).

In addition, cost went up at a faster pace for: medical care (1.8 percent from 1.6 percent); transport & communication (1.5 percent from 0.7 percent); culture and recreation (1.3 percent from 0.5 percent) and miscellaneous (0.6 percent from 0.5 percent). At the same time, cost increased less for clothes and footwear (0.3 percent from 0.5 percent) and fuel, light and water charges (4.3 percent from 4.6 percent, as cost of electricity went up 5.8 percent, after a 6.4 percent rise in the prior month). Inflation was steady for education (0.4 percent). 

On the other hand, prices continued to fall for housing (-0.1 percent from -0.1 percent) and furniture and household utensils (-1.7 percent from -1.2 percent)

Core inflation rate, which exclude fresh food, rose by 1 percent from a year earlier and matching expectations. It is the highest level since March of 2015.

On a monthly basis, consumer prices went up 0.1 percent, compared to a 0.4 percent increase in the preceding month.

Japan Inflation Rate at 35-Month High of 1.5% in February


Statistics Japan l Rida Husna | rida@tradingeconomics.com
3/23/2018 4:12:48 AM