Japan: Core inflation inches down in February

The core consumer price index rose 0.2% in month-on-month seasonally-adjusted terms in February, matching January’s result.

Core inflation inched down from January’s 0.8% to 0.7% in February. The reading was a notch below the 0.8% that market analysts had expected. Nevertheless, inflation remained well below the Bank of Japan’s inflation target of 2.0%. Overall inflation stabilized at January’s 0.2% in February.

Core inflation in the Ku-area of Tokyo rose from January’s 1.1% to 1.2% in February. Data for March will be released on 29 March.

Japan Inflation Forecast

The median inflation forecast among BoJ members is 1.9% for FY 2019 and 2.0% for FY 2020, including the effects of the consumption tax hike. FocusEconomics Consensus Forecast panelists expect inflation of 1.0% in calendar year 2019, which is unchanged from last month’s estimate. In 2020, the panel sees inflation at 1.5%.