Japan: Core inflation continues to rise in November
December 26, 2017
In November, the core consumer price index rose 0.2% from the previous month in seasonally-adjusted terms, matching October’s result.
Core inflation rose from October’s 0.8% to 0.9% in November, which represented the highest reading since March 2015. The print was slightly above the 0.8% that market analysts had expected. Overall inflation rose from 0.2% in October to 0.6% in November.
Core inflation for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—rose from November’s 0.6% to 0.8% in December.
Japan Inflation Forecast
The Bank of Japan (BoJ) expects that core inflation will be 1.4% in the fiscal year ending March 2019. In the following fiscal year, the BoJ sees inflation rising to 2.3%. FocusEconomics Consensus Forecast panelists expect inflation of 0.8% in calendar year 2018, which is unchanged from last month’s estimate. In 2019, the panel sees inflation at 1.2%.