Japan Inflation Rate At 5-Month Low Of 0.2% In March

Consumer prices in Japan rose 0.2 percent year-on-year in March of 2017, compared to a 0.3 percent rise in February and below market consensus of a 0.3 percent gain. It was the lowest inflation rate since October 2016, driven by a slowdown in cost of food and transport while cost of housing fall further.

Year-on-year, prices increased at a slower pace for: food (0.5 percent from 0.8 percent in a month earlier, namely fresh food: -0.4 percent from 1.4 percent), clothes and footwear (0.6 percent from 1.3 percent), medical care (0.5 percent from 0.6 percent) and transportation and communication (0.2 percent from 0.3 percent). Cost went up more than in a month earlier for: culture and recreation (0.7 percent from 0.4 percent) and miscellaneous (0.4 percent from 0.3 percent). In contrast, cost declined for: housing (-0.2 percent from -0.2 percent); fuel, light and water charges (-0.8 percent from -2.1 percent) and furniture and household utensils (-0.8 percent from 0.6 percent). Inflation was steady for education (1.0 percent). 

Core consumer prices, which exclude fresh food, went up 0.2 percent on the year, the same as in the prior month. It was the third straight month of rise and staying at its highest level since April 2015.

On a monthly basis, consumer prices fell 0.1 percent, following a 0.1 percent drop in February and marking the second straight month of decline.

In Tokyo, consumer prices fell 0.1 percent in April, after a 0.4 percent drop in March while market estimated a 0.2 percent decline. Core consumer prices, which exclude fresh food, also decreased 0.1 percent from a year earlier, compared to a 0.4 percent fall in the previous month and below consensus of a 0.2 percent drop.

Japan Inflation Rate At 5-Month Low Of 0.2% In March

Statistics Japan l Rida Husna | rida@tradingeconomics.com
4/28/2017 12:51:50 AM