In August, the core consumer price index, which excludes volatile fresh food prices, added 0.1% over the previous month. The reading contrasted the 0.2% price drop seen in July. Higher prices for culture and recreation as well as for transportation and communication offset lower prices for clothing and footwear. Despite the monthly price increase, core consumer prices dropped 0.3% over the same month last year, which mirrored the result observed in July. The result came in a notch below market expectations that had core prices declining 0.2%. Meanwhile, overall consumer prices fell 0.5% over the same month last year, which was also a notch below the 0.4% fall seen in July. 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 0.4% in September over the same month last year (August: -0.5% year-on-year). The decline overshot market expectations that had the index falling 0.3%. 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 rise in August
September 28, 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 24, 2016
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from September’s revised 50.4 (previously reported: 50.3) to 51.7 in October.
October 24, 2016
In September, nominal exports valued in yen declined 6.9% from the same month last year, which followed August’s 9.6% decline.
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.