Japan Inflation Rate Slows to 5-Month Low

Japan's consumer price inflation eased to a 5-month low of 0.8 percent year-on-year in November 2018 from 1.4 percent in the previous month, in line with market expectations. Food and transport prices rose at a slower pace while housing costs continued to fall.

Prices of food increased by 0.5 percent from a year earlier in November, much slower than a 2.4 percent rise in October. It was the lowest food inflation in five months, as cost rose less for: meats (0.1 percent vs 0.4 percent), fruits (3.6 percent vs 7.8 percent), of which fresh fruits (3.6 percent vs 8.3 percent); cooked food (0.6 percent vs 0.7 percent); cereals (1.1 percent vs 1.6 percent); fish & seafood (1.5 percent vs 1.6 percent), of which fresh fish & seafood (-0.2 percent vs 0.1 percent); and dairy products & eggs (2.8 percent vs 3 percent). In addition, prices decreased for vegetables & seaweeds (-2 percent vs 14.4 percent), of which fresh vegetables (-4.5 percent vs 20.4 percent), and alcoholic beverages (-1.1 percent vs -1.2 percent). Meals outside the home inflation edged up 1.1 percent from 1 percent. 

Cost went up at a softer rate for transportation & communication (1.2 percent vs 1.9 percent); and culture & recreation (1 percent vs 1.4 percent), while continued to fall for housing (-0.1 percent vs -0.2 percent) and furniture & household utensils (-0.7 percent vs -1 percent). Meantime, inflation was unchanged for both clothes & footwear (at 0.1 percent) and education (at 0.5 percent), while picked up for fuel, light & water charges (5 percent vs 4.4 percent), of which electricity (5.6 percent vs 4.5 percent) and gas (4 percent vs 3.2 percent); miscellaneous goods & services (0.9 percent vs 0.8 percent); and medical care (1.2 percent vs 1.1 percent). 

Core inflation rate, which excludes fresh food, slowed to 0.9 percent in November from 1 percent in the previous month and slightly below expectations of 1 percent. It marked the lowest core rate in three months.

On a monthly basis, consumer prices declined 0.2 percent in November, the first monthly drop since April, after a 0.2 percent rise in October.

Japan Inflation Rate Slows to 5-Month Low

Statistics Japan | Rida | rida@tradingeconomics.com
12/21/2018 12:17:44 PM