Japan's annual core consumer inflation, which excludes fresh food, slowed to a seven-month low of 0.7 percent in December 2018 from 0.9 percent in the previous month, missing market expectations of 0.8 percent. The figure came in well below the Bank of Japan's 2 percent target ahead of next week's policy meeting, where the nine-member board is seen cutting its price forecasts and warning of heightening global uncertainties. Core Inflation Rate in Japan averaged 2.53 percent from 1971 until 2018, reaching an all time high of 24.70 percent in October of 1974 and a record low of -2.40 percent in August of 2009.
Core Inflation Rate in Japan is expected to be 1.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Core Inflation Rate in Japan to stand at 1.20 in 12 months time. In the long-term, the Japan Core Inflation Rate is projected to trend around 1.60 percent in 2020, according to our econometric models.