Japan: Core inflation falls to five-month low in August
September 26, 2014
In August, the core consumer price index, which excludes volatile fresh food prices, was flat over the previous month. August’s result, which came in below the 0.1% increase recorded in July, mainly reflected that much higher prices for culture and recreation and transportation were offset by lower prices in most of the remaining sub-categories.
Annual core inflation inched down from the previous month’s 3.3% to 3.1% in August. The print undershot the 3.2% reading that the market had expected and represented the lowest rate since March. Overall inflation ticked down from 3.4% in July to 3.3% in August.
Core inflation for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—inched down from 2.7% in August to 2.6% in September, which matched the result that market analysts had expected.