In January, the core consumer price index, which strips out volatile fresh food prices, dropped 0.4% over the previous month. The figure, which came in below December's flat reading, still beat market analysts' expectations of a 0.5% decline. As a result, annual core inflation maintained the upward trend seen over the previous months, stepping up from minus 0.4% in December to minus 0.2%. Meanwhile, the overall consumer price index dropped a less severe 0.2% over the previous month. The most important drivers behind the less pronounced price drop were increases in food prices, in particular fresh food (+2.7% month-on-month), which mitigated the impact of lower prices for clothing and footwear (-6.9% mom). Owing to the subdued reading, annual inflation remained unchanged at the flat reading tallied in December. The Bank of Japan (BoJ) expects the economy to exit deflation in the fiscal year ending in March 2012 and recently raised its forecast for average inflation to 1.0%. For the fiscal year 2012, ending in March 2013, the Bank anticipates inflation to moderate to 0.7%, which is below the 1.0% considered by the BoJ to represent price stability.
Japan on its way out of deflation
February 25, 2011
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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, 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).
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.