Japan: Core inflation declines to nine-month low in December
January 30, 2015
In December, the core consumer price index, which excludes volatile fresh food prices, fell 0.2% over the previous month. The print, which matched the result tallied in November, mainly reflected lower prices for clothes and footwear as well as for transportation and communication.
Annual core inflation fell from the previous month’s 2.7% to 2.5% in December. The print slightly undershot the 2.6% that market analysts had expected and represented the lowest rate since March. Overall inflation stabilized at November’s 2.4% in December.
Core inflation for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—was stable in January at the previous month’s 2.2%, which matched the result that market analysts had expected.
The moderation observed in inflation since the second half of 2014 has added more pressure to the Central Bank to expand further the Bank’s quantitative and qualitative monetary easing program.