Japanese Inflation Rate Rises to 5-Year High in July

In July, Japan's consumer prices rose 0.7 percent, the fastest rise since November of 2008. The rise in inflation was largely due to an increase in fuel, light and transportation costs driven by weak yen that inflated the cost of gasoline imports.

In July, fuel, light and water charges charges increased the most (6.4 percent), followed by transportation (2.6 percent), clothes and footwear (0.8 percent) and education (0.5 percent). Price decreases were reported for furniture and household utensils (-1.9 percent), culture and recreation (-0.9 percent), medical care (-0.6 percent) and housing (0.4 percent). 

Compared to the previous month, prices of clothes and footwear (-2.4 percent), furniture and household utensils (-0.1 percent) and medical care (-0.1 percent) decreased. The biggest gains were registered for fuel, light and water charges (0.7 percent), transportation and communication (0.6 percent) and food (0.5 percent).

In July, core inflation, which excludes both food and energy, was up 0.7 percent on the year and up 0.1 percent compared to June.

Japanese Inflation Rate Rises to 5-Year High in July

Statistics Japan | Nuno Fontes | nuno@tradingeconomics.com
8/30/2013 9:10:59 AM