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Japan Deflation Intensifies
Japan's consumer prices declined 1.2 percent year-on-year in December of 2020, after falling 0.9 percent in the previous month, as the pandemic continued to drag consumption heavily. The decline was bigger than expected and was the sharpest since April of 2010. Prices were mainly dragged by utilities (-6.1 percent vs -5.4 percent in November), food (-0.8 percent vs -0,2 percent), education (unchanged at -2.2 percent), transportation & communication (-1.3 percent vs -1.1 percent), and culture & recreation (-4.0 percent vs -3.8 percent). Meanwhile, prices for medical care fell again by a softer 0.4 percent compared to -0.5 percent. On a monthly basis, consumer prices dropped 0.3 percent after declining 0.5 percent. Core consumer prices, which exclude fresh food, dropped 1.0 percent on the year.
Published on 2021-01-21

Japan Records Sharpest Deflation in 10 Years
Japan's consumer prices declined 0.9 percent year-on-year in November of 2020, after falling 0.4 percent in the previous month, as the pandemic continued to drag consumption heavily. The decline was bigger than expected and was the sharpest since August of 2010. Prices were mainly dragged by utilities (-5.4 percent vs -2.9 percent in October), food (-0.2 percent vs 1.1 percent), education (-2.2 percent vs -2.1 percent), transportation & communication (-1.1 percent vs -0.9 percent), and culture & recreation (-3.8 percent vs -4.0 percent). Meanwhile, prices for medical care fell again by 0.5 percent. On a monthly basis, consumer prices dropped 0.4 percent after edging down 0.1 percent. Core consumer prices, which exclude fresh food, dropped 0.9 percent on the year.
Published on 2020-12-17

Japan Consumer Prices Fall for First Time Since 2016
Japan's consumer prices declined 0.4 percent in October year-on-year after remaining unchanged in the previous month, as the pandemic continued to drag consumption. The decline was sharper than the 0.3 percent expected by consensus and was the sharpest in more than 4 years. Food inflation declined to 1.1 percent from 1.9 percent. Prices fell for education (-2.1 percent), culture & recreation (-4 percent), medical care (-0.5 percent), and utilities (-2.9 percent). Also, prices for transport & communication declined 0.9 percent after increasing 0.4 percent in September. On a monthly basis, consumer prices edged down 0.1 percent for the third month. Core consumer prices, which exclude fresh food, dropped 0.7 percent after falling 0.3 percent in the previous month.
Published on 2020-11-19

Japan Consumer Prices Unchanged in September
Japan's consumer prices remained unchanged September year-on-year after increasing 0.2 percent in the previous month, as the pandemic continued to hamper consumption. Food inflation declined to 1.9 percent from 2.9 percent. Prices for education continued to drop at a sharp 10.3 percent pace. In contrast, prices for transport & communication rose by 0.4 percent after increasing 0.2 percent in August. Meanwhile, deflation for fuel, light & water charges accelerated (-2.2 percent vs -1.9 percent). On a monthly basis, consumer prices edged down 0.1 percent for the second month. Core consumer prices, which exclude fresh food, dropped 0.3 percent after falling 0.4 percent in the previous month.
Published on 2020-10-22

Japan Inflation Rate Edges Down
Japan's consumer price inflation dropped to 0.2 percent yoy in August from 0.3 percent in July 2020, as the pandemic continued to hamper consumption excluding food. Food inflation jumped to 2.9 percent from 1.9 percent. Prices for education continued to drop at a sharp 10.3 percent pace. In contrast, prices for transport & communication rose by 0.2 percent after edging down 0.1 percent in July. Meanwhile, deflation for fuel, light & water charges softened (-1.9 percent vs -2.2 percent). On a monthly basis, consumer prices edged down 0.1 percent after edging up 0.2 percent. Core consumer prices, which exclude fresh food, fell a sharp 0.4 percent after remaining unchanged in the two previous months.
Published on 2020-09-17

Japan Inflation Rate Climbs to 0.3% YoY
Japan's consumer price inflation climbed to 0.3 percent in July from an over 3-year low of 0.1 percent yoy in June 2020, as the pandemic continued to hamper consumption excluding food. Prices fell at a softer 10.3 percent pace for education (vs 10.5 percent in June) and 0.1 percent for transport & communication (vs -0.5 percent). In contrast, fuel, light & water charges prices dropped further (-2.2 percent vs -2 percent). Meanwhile, inflation for housing remained unchanged at 0.7 percent. Food inflation jumped to 1.9 percent from 1.5 percent in the previous month. On a monthly basis, consumer prices edged up 0.2 percent after edging up 0.1 percent. Core consumer prices, which exclude fresh food, remained unchanged for the second month.
Published on 2020-08-20

Japan Inflation Rate Remains at 3-Year Lows
Japan's consumer price inflation stood at an over 3-year low of 0.1 percent yoy in June 2020, as the pandemic continued to hamper consumption. Prices fell a sharp 10.5 percent for education, and fell for transport & communication (-0.5 percent), fuel, light & water charges (-2 percent), and miscellaneous (-3 percent). Meanwhile, inflation for housing edged down to 0.7 percent (vs 0.8 percent in May) and for clothing & footwear to 1.3 percent (vs 1.4 percent in May). Also, inflation for food declined to 1.5 percent from 2.1 percent. In contrast, medical care costs went up 0.6 percent (vs 0.5 percent in May). On a monthly basis, consumer prices edged up 0.1 percent after remaining flat. Core consumer prices, which exclude fresh food, remained unchanged after dropping 0.2 percent in the previous month and compared to a 0.1 percent decline.
Published on 2020-07-20

Japan Inflation Rate Steady at Over 3-Year Low of 0.1%
Japan's consumer price inflation stood at an over 3-year low of 0.1 percent yoy in May 2020, in line with market estimates, as Covid-19 pandemic continued to hamper consumption. Prices fell further for transport & communication (-1.7 percent vs -1.2 percent in April), amid slumping oil prices. In contrast, inflation edged up for housing (0.8 percent vs 0.7 percent) while it remained unchanged for medical care (at 0.5 percent); clothing & footwear (at 1.4 percent) and food (at 2.1 percent). On a monthly basis, consumer prices were flat after declining 0.2 percent. Core consumer prices, which exclude fresh food, dropped 0.2 percent (the same pace as in April) and compared with market consensus of a 0.1 percent drop.
Published on 2020-06-18

Japan Inflation Sinks to 0.1% YoY
Japan's consumer price inflation sank to 0.1 percent yoy in April 2020 and fell to the lowest level since November of 2016, as Covid-19 pandemic continued to hamper consumption. Prices fell for transport & communication (-1.2 percent vs 0.7 percent in March), amid slumping oil prices. Meanwhile, inflation slowed for housing (0.7 percent vs 0.8 percent), medical care (0.5 percent vs 0.7 percent). In contrast, inflation went up for clothes & footwear (1.4 percent vs 1.3 percent) and food (2.1 percent vs 1.4 percent). On a monthly basis, consumer prices fell 0.2 percent after remaining unchanged in March. The annual core inflation rate, which excludes fresh food, fell to 0.2 percent after a 0.6 percent print in the previous two months and remained well below the Bank of Japan's 2% target.
Published on 2020-05-21

Japan Inflation Rate Steady at 4-Month Low of 0.4%
Japan's consumer price inflation remained unchanged at 0.4 percent yoy in March 2020. Still, it was the lowest inflation since last October, as Covid-19 pandemic continued to hamper consumption. Prices slowed mostly for transport & communication (0.7 percent vs 1.4 percent in February), amid slumping oil prices. Meanwhile, inflation remained unchanged for housing (0.8 percent), clothes & footwear (1.3 percent), and medical care (0.7 percent). In contrast, food prices continued to grow (1.4 percent vs 1.2 percent). On a monthly basis, consumer prices remained unchanged after declining 0.1 percent in February. The annual core inflation rate, which excludes fresh food, remained unchanged at 0.6 percent and well below the Bank of Japan's 2% target.
Published on 2020-04-23

Japan Inflation Rate Slows to 4-Month Low
Japan's consumer price inflation unexpectedly fell to 0.4% yoy in February 2020 from 0.7% in the previous month, below market consensus of 0.8%. This was the lowest inflation rate since last October, as prices went up less for furniture & household utensils (2.1% vs 2.7% in January), culture & recreation (1.1% vs 2.1%), medical care (0.7% vs 0.8%), and transport & communication (1.4% vs 1.7%), reflecting decreases in crude oil prices. In addition, fuel, light & water charges, education and miscellaneous goods & services remained in deflationary territory. Meanwhile, inflation was unchanged for both food (at 1.2%) and housing (at 0.8%), while prices rose faster for clothes & footwear (1.3% vs 1.1%). On a monthly basis, consumer prices dropped 0.1%, after being unchanged in January. The annual core inflation rate, which excludes fresh food, fell to 0.6% from 0.8% remaining well below the Bank of Japan's 2% target.
Published on 2020-03-18

Japan Inflation Rate Eases from 8-Month High
Japan's consumer price inflation edged down to 0.7 percent year-on-year in January 2020 from an eight-month high of 0.8 percent in the previous month, as prices went up at a slower pace for food (1.2 percent vs 1.9 percent in December), furniture & household utensils (2.7 percent vs 3 percent), clothes & footwear (1.1 percent vs 1.4 percent) and culture & recreation (2.1 percent vs 2.8 percent). Meanwhile, inflation was flat for housing (at 0.8 percent), and picked up for transport & communication (1.7 percent vs 0.8 percent) and medical care (0.8 percent vs 0.5 percent). Fuel, light & water charges, education and miscellaneous goods & services remained in deflationary territory. On a monthly basis, consumer prices were unchanged in January, after a 0.1 percent gain in December. Annual core inflation rate, which excludes fresh food, rose to 0.8 percent, remaining well below the Bank of Japan's 2 percent target.
Published on 2020-02-20

Japan Inflation Rate Hits 8-Month High
Japan's consumer price inflation rose to 0.8 percent year-on-year in December 2019 from 0.5 percent in the previous month, above market consensus of 0.4 percent. This was the highest rate since April, as food prices rose the most in 14 months (1.9 percent vs 1.5 percent in November) and housing inflation stood at the highest level for over two decades (at 0.8 percent). In addition, transport cost increased for the first time in 13 months (0.8 percent vs -0.5 percent) and culture & recreation inflation hit a near five-year high (2.8 percent vs 2.3 percent). Meantime, annual core consumer inflation, which excludes fresh food, rose to 0.7 percent in December, the highest since May, but below the Bank of Japan's 2 percent target. The so-called core-core inflation index, which excludes fresh food and energy prices, grew 0.9 percent, the fastest pace since March 2016. Considering 2019 full year, inflation rate averaged 0.5 percent, down from 1 percent in 2018.
Published on 2020-01-24

Japan Inflation Rate Climbs to 0.5% in November
Japan's consumer price inflation rose to 0.5 percent year-on-year in November 2019 from 0.2 percent in the previous month and above market consensus of 0.2 percent. This was the highest rate in four months, as food and housing prices rose increased faster while transport deflation eased. On a monthly basis, consumer prices rose 0.2 percent.
Published on 2019-12-19

Japan Inflation Rate Stays at 7-Month Low in October
Japan's consumer price inflation stood at 0.2 percent year-on-year in October of 2019, unchanged from September and below market expectations of 0.3 percent. It remained the lowest inflation rate since February despite a sales tax hike during the month, with fuel prices falling for the first time in 31 months and cost of transport declining for the eleventh straight month. On a seasonally adjusted basis, consumer prices were flat for the third straight month.
Published on 2019-11-21

Japan Inflation Falls to 7-Month Low
Japan's consumer price inflation fell to 0.2 percent year-on-year in September 2019 from 0.3 percent in the previous month and well below market expectations of 0.4 percent. It was the lowest inflation rate in seven months, mainly pushed down by lower gasoline prices. The latest reading raises the chances of further stimulus after the Bank of Japan decided to leave policy unchanged during its September meeting but left the window wide open for easing, calling for a review of prices and the economy in October. Annual core consumer inflation, which excludes fresh food, was at 0.3 percent in August, the lowest since April 2017.
Published on 2019-10-17

Japan Inflation Rate Falls to 6-Month Low
Japan's consumer price inflation fell to 0.3 percent year-on-year in August 2019 from 0.5 percent in the previous month and well below market expectations of 0.6 percent. It was the lowest inflation rate in six months, raising the chances of further stimulus after the Bank of Japan decided to leave policy unchanged during its September meeting but left the window wide open for easing, calling for a review of prices and the economy in October. Annual core consumer inflation, which excludes fresh food, was at 0.5 percent in August, the lowest in over two years.
Published on 2019-09-20

Japan Inflation Rate Slows to 4-Month Low in July
Japan's consumer price inflation fell to 0.5 percent year-on-year in July 2019 from 0.7 percent in the previous month and in line with market expectations. It was the lowest inflation rate since March, amid a slowdown in food prices and a fall for the eighth consecutive month in cost of transport and communication. On a seasonally adjusted monthly basis, consumer prices rose by 0.1 percent in July, following a flat reading in the previous two months.
Published on 2019-08-22

Japan Inflation Rate Unchanged at 0.7% in June
Japan's consumer price inflation came in at 0.7 percent year-on-year in June 2019, unchanged from the previous month and matching market expectations. A faster rise in cost of food and housing was offset by a steeper decline in prices of transport and communication. The annual core consumer inflation, which excludes fresh food, fell to 0.6 percent, the lowest since July 2017, from 0.8 percent in May. On a seasonally adjusted monthly basis, consumer prices were flat for the second consecutive month.
Published on 2019-07-18

Japan Inflation Rate Slows to 0.7% in May
Japan's consumer price inflation fell to 0.7 percent year-on-year in May 2019 from a six month-high of 0.9 percent in the prior month and in line with market consensus. The slowdown in headline inflation was mainly led by electricity, transportation & communication and housing. Meanwhile, prices of food rose for the second straight month. On a seasonally adjusted monthly basis, consumer prices were unchanged in May, after a 0.1 percent gain in April.
Published on 2019-06-20