Japan Inflation Rate at 7-Month Low of 0.2% in October

Consumer prices in Japan rose 0.2 percent year-on-year in October of 2017, following a 0.7 percent increase in the prior two months and matching market consensus. It was the lowest inflation rate since March, as cost of transport was flat while prices of food fell for the first time since June 2013 and cost of housing continued to decline.
Statistics Japan l Rida Husna | rida@tradingeconomics.com 12/1/2017 12:13:58 AM
In October, prices of food declined by 1.3 percent year-on-year (after a 1.0 percent rise in September), namely, fresh food (-12.1 percent from 1.2 percent), fish and seafood (5.3 percent from 5.6 percent) and fresh fruits (-5.4 percent from 3.6 percent). Also, prices fell at a faster rate for dairy product and eggs (--0.5 percent from -0.4 percent).

Meantime, prices increased less for medical care (1.6 percent from 1.8 percent), while went up at a faster pace for: fuel, light and water charges (6.2 percent from 6.0 percent), as cost of  of electricity was steady (at 7.9 percent) and miscellaneous (0.2 percent from 0.1 percent)

Cost was flat for transport & communication (the same as in a month earlier) and inflation was steady for education (at 0.4 percent).

On the other hand, cost fell for: housing (-0.1 percent from -0.2 percent); furniture and household utensils (-0.3 percent from -0.2 percent); clothes and footwear (-0.1 percent from -0.3 percent) and culture and recreation (-0.1 percent from 0.2 percent).

Core consumer prices, which exclude fresh food, went up 0.8 percent from a year earlier, after a 0.7 percent rise in Septemberthe same pace as in August and in line with estimates. It  was the highest figure since March of 2015.

On a monthly basis, consumer prices were flat, the same as in September.

In Tokyo, consumer prices rose 0.3 percent year-on-year while markets estimated a 0.1 percent fall. Core consumer prices, which exclude fresh food went up by 0.6 percent and in line with consensus.

Japan Inflation Rate at 7-Month Low of 0.2% in October