Japanese Consumer Prices Rise For 1st Time in 8 Months
Consumer prices in Japan increased 0.1 percent year-on-year in October of 2016. It is the first rise in eight months boosted by higher fresh food prices. However, core consumer prices which exclude fresh food went down 0.4 percent, the eighth straight month of anual declines and in line with expectations.
11/25/2016 12:12:55 AM
Year-on-year, food prices went up 2.3 percent, following a 0.6 percent increase in September. It is the biggest rise since March, boosted by an 11.4 percent jump in fresh food cost, namely a 16 percent rise in fresh vegetables and a 10.1 percent increase in fresh fruit. Inflation rose for recreation and culture (1 percent compared to 0.3 percent in September); was flat at 1 percent for medical care and eased to 1.2 percent for clothing and footwear (1.5 percent in September).
In addition, prices declined at a slower pace for fuel, light and water charges (- 6 percent compared to -6.2 percent in September) and transportation and communication (-1.7 percent compared to -2.1 percent in September) but fell faster for housing (-0.2 percent compared to -0.1 percent in each of the previous six months).
On a monthly basis, consumer prices rose 0.6 percent, following a 0.2 percent gain in September. It is the biggest increase since April of 2014.
In Tokyo, consumer prices rose 0.5 percent year-on-year in November, following a 0.1 percent gain in October while markets expected a 0.3 percent decline. Core consumer prices, which exclude fresh food, declined 0.4 percent from a year earlier, following a 0.4 percent drop in a month earlier and matching estimates.