Japan June Inflation Rate Weaker than Estimated



Japan's consumer price inflation stood at 0.7 percent year-on-year in June of 2018, unchanged from the previous month and below market consensus of 0.8 percent. Food inflation hit its lowest since a deflation in last November while cost of transport rose at a faster pace and cost of housing continued to fall.

In June, prices of food increased by 0.4 percent year-on-year, slower than a 0.8 percent rise in May. It was the lowest food inflation since a deflation in last November, as cost rose less for fish and seafood (3.2 percent from 3.5 percent); and dairy product and eggs (2.9 percent from 3 percent), while dropped for fresh food (-1.2 percent from -0.7 percent); and fresh fruits (-1.3 percent from 2.6 percent).

Meanwhile, cost went up at a faster pace for: transport & communication (1.4 percent from 1.3 percent); culture and recreation (0.8 percent, after a flat reading in May); fuel, light and water charges (3.3 percent from 3.1 percent) as cost of electricity increased by 3.1 percent, faster than a 3.3 percent rise in the prior month); miscellaneous (0.4 percent from 0.3 percent); medical care (2 percent from 1.9 percent); and education (0.5 percent from 0.3 percent). Cost of clothes and footwear was flat, following a 0.1 percent rise in a month earlier.

At the same time, cost continued to fall for housing (-0.1 percent from - 0.1 percent fall in May); and furniture and household utensils (-1 percent from -1.5 percent).

Core inflation rate, which excludes fresh food, rose to 0.8 percent from 0.7 percent in May and in line with estimates. It is the highest figure since March.

On a monthly basis, consumer prices went up by 0.1 percent, the same as in the prior month.

Japan June Inflation Rate Weaker than Estimated


Statistics Japan l Rida | rida@tradingeconomics.com
7/20/2018 2:43:03 AM