Japan CPI Falls for 5th Month

Consumer prices in Japan dropped by 0.4 percent year-on-year in July of 2016, the same pace as in the previous two months. It was the fifth straight month of decline as cost of housing and transport fell while prices of food were steady.

Year-on-year, cost declined for: housing (-0.1 percent in July from -0.1 in June); fuel, light and water charges (-7.7 percent from -8.7 percent), furniture and household utensils (-0.8 percent after remaining unchanged) and transport and communication (-2.6 percent from -2.4 percent). In contrast, prices rose for: food (+1.1 percent from +1.1 percent), clothes and footwear (+2.4 percent from +2.0 percent), medical care (+0.9 percent from +0.6 percent), education (+1.6 percent from +1.4 percent), culture and recreation (+0.8 percent from +1.1 percent) and miscellaneous goods and services (+0.7 percent from +0.9 percent).

Core consumer prices fell 0.5 percent from a year earlier in July, following a downwardly revised 0.4 percent decline in June. It was the fifth consecutive month of fall and the fastest drop since March 2013 while market expected a 0.4 percent decrease. The so-called core-core consumer prices, which excludes food and energy prices rose 0.3 percent year-on-year, compared to a 0.4 percent rise in June.

On a monthly basis, consumer prices declined by 0.2 percent, the same as in the prior month.

In Tokyo, consumer prices dropped by 0.5 percent year-on-year in August, compared to a 0.4 percent fall in July. Core consumer prices, which exclude fresh food, fell 0.4 percent from a year earlier, the same pace as in a month earlier while market estimates of a 0.3 percent drop.

Japan CPI Falls for 5th Month

Statistics Bureau of Japan l Rida Husna | rida@tradingeconomics.com
8/26/2016 3:38:51 AM