Japan Inflation Rate Rises to 8-Month High in October

Japan's consumer price inflation rose to 1.4 percent year-on-year in October 2018 from 1.2 percent in the previous month and matching market estimates. It was the highest rate since February, mainly due to a jump in prices of food.

Prices of food increased by 2.4 percent from a year earlier in October, much faster than a 1.8 percent rise in September. It was the highest food inflation in eight months mainly driven by prices of vegetables & seaweeds (14.4 percent vs 8.1 percent), of which fresh vegetables (20.4 percent vs 10.4 percent); meats (0.4 percent vs 0.3 percent); fruits (7.8 percent vs 3.5 percent) of which fresh fruits (8.3 percent vs 3.5 percent). Meanwhile, inflation was unchanged for meals outside the home (at 1 percent), and slowed for cooked food (0.7 percent vs 0.9 percent); cereals (1.6 percent vs 2 percent); fish & seafood (1.6 percent vs 1.9 percent), of which fresh fish & seafood (0.1 percent vs 0.4 percent); and dairy products & eggs (3 percent vs 3.1 percent).

Additional upward pressure came from: transportation and communication (1.9 percent vs 2.1 percent); culture and recreation (1.4 percent vs 1 percent); fuel, light & water charges (4.4 percent vs 3.7 percent), of which electricity (4.5 percent vs 3.6 percent); miscellaneous goods and services (0.8 percent vs 0.2 percent); medical care (1.1 percent vs 1 percent); clothes and footwear (0.1 percent, the same as in September); and education (0.5 percent, the same as in September). Meantime, cost continued to fall for housing (-0.2 percent vs -0.1 percent) and furniture and household utensils (-1 percent, the same as in September).

Core inflation rate, which excludes fresh food, stood at 1 percent, unchanged from the previous month and in line with expectations. It remained the highest figure since February.

On a monthly basis, consumer prices went up 0.2 percent in October, after being unchanged in September.

Japan Inflation Rate Rises to 8-Month High in October

Statistics Japan | Rida | rida@tradingeconomics.com
11/22/2018 4:52:37 PM