Japanese Inflation Rate Slows Further in February

Consumer prices in Japan rose 2.2 percent on a year in February, down from 2.4 percent reported in the previous month amid declining oil prices and weak demand.

Core consumer price index, which includes oil products but excludes fresh food prices rose 2 percent, compared with 2.2 percent increase in the previous month. Core core consumer prices growth slowed to 2 percent in February from a year earlier compared with 2.1 percent reported in January.

Excluding the effect of last April's sales tax hike, core consumer price index was flat in February compared with a year earlier, the first time since May 2013 that it has stopped rising.

Year-on-year, the biggest price increases were reported for: food (+4.1 percent); fuel, light and water (+3.5 percent), culture and recreation (+3.5 percent) and clothes and footwear (+3.5 percent). Cost of furniture and household utensils grew by 1.6 percent,  education by +2.2 percent, medical care by 1.8 percent and housing by 0.3 percent. In contrast cost of transportation and communication decreased by 0.4 percent.  

Month-on-month, consumer prices declined by 0.2 percent, the same as in the previous month.

The consumer price index for Ku-area of Tokyo in March 2015 (preliminary) was 102.1 (2010=100), up 0.4 percent from the previous month, and up 2.3 percent over the year.

Japanese Inflation Rate Slows Further in February

Statistics Japan | anna@tradingeconomics.com
3/27/2015 12:13:09 AM