Japan: Core inflation hits five-month high in April

The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in April, coming in above March’s flat reading.

Core inflation inched up from March’s 0.8% to 0.9% in April. The reading was in line with the result that market analysts had expected. Nevertheless, inflation remained well below the Bank of Japan’s inflation target of 2.0%. Overall inflation rose from March’s 0.5% to 0.9% in April.

Core inflation in the Ku-area of Tokyo rose from March’s 1.1% to 1.3% in April. Data for April will be released on 31 May.

Japan Inflation Forecast

The median inflation forecast among BoJ members is 1.1% for FY 2019 and 1.5% for FY 2020, including the effects of the consumption tax hike. FocusEconomics Consensus Forecast panelists expect inflation of 0.9% in calendar year 2019, which is down 0.1 percentage points from last month’s estimate. In 2020, the panel sees inflation at 1.3%.