Japan: Core inflation continues to ease in September
October 31, 2014
In September, the core consumer price index, which excludes volatile fresh food prices, was flat over the previous month. The print, which matched the result observed in August, mainly reflected that lower prices for culture and recreation, transportation, and fuel, light and water charges were offset by higher prices in most of the remaining sub-categories.
Annual core inflation inched down from the previous month’s 3.1% to 3.0% in September. The print was in line with market expectations and represented the lowest rate since March. Overall inflation ticked down from 3.3% in August to 3.2% in September.
Core inflation for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—inched down from 2.6% in September to 2.5% in October, which matched the result that market analysts had expected.