In July, the core consumer price index, which excludes volatile fresh food prices, fell 0.2% over the previous month, which was above June's 0.4% drop. According to the statistics bureau, consumer prices mostly reflected how a rise in fuel, light and water charges was more than offset by lower prices in all remaining categories, particularly in clothes and footwear. As a result, core consumer prices declined 0.3% in July over the same month last year, which was an inch below the 0.2% drop seen in June. The July print, which came in line with market expectations, represented, in fact, the lowest reading seen since June 2011. Meanwhile, overall consumer prices fell 0.4% in July over the same month last year, following the 0.1% drop recorded in June. The core consumer price index for Tokyo, which is available one month before the national figures and thus is a leading indicator for countrywide inflation, fell 0.5% in August over the same month last year (July: -0.6% year-on-year). The print overshot market expectations that had the index falling 0.6%. According to the median of the Central Bank Policy Board members forecast, core inflation will average 0.2% in the 2012 fiscal year ending in March 2013. In FY 2013/14, the Bank of Japan sees core inflation at 0.7%.
Core consumer prices continue to decline in July
August 31, 2012
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Japan Inflation Chart
Note: Year-on-year and month-on-month var. of consumer price index in %.
Source: Statistics Bureau (SB) and FocusEconomics calculations.
Japan Economic News
October 12, 2016
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) declined for the first time in three months in August.
October 4, 2016
Consumer sentiment rose from August’s 42.0 to 43.0 in September.
October 3, 2016
According to the Bank of Japan’s quarterly TANKAN business survey, sentiment among large manufacturers was stable at 6 in Q3.
September 30, 2016
In August, the core consumer price index was flat compared to the previous month, which was above the 0.2% decline in July.
September 30, 2016
In August, industrial production expanded 1.5% over the previous month in seasonally-adjusted terms, which contrasted July’s 0.4% decrease (previously reported: 0.0% month-on-month).