Japan Inflation

Japan

Japan: Core inflation inches down in June from May's multi-year high

July 25, 2014

In June, the core consumer price index, which excludes volatile fresh food prices, was flat over the previous month. June’s result came in below the 0.4% increase recorded in May. June’s print mainly reflected that higher prices for culture and recreation and for fuel, light and water charges were offset by lower prices in most of the remaining categories.

Annual core inflation inched down from 3.4% in May to 3.3% in June. May’s print had represented the highest reading since 1982. That said, the slight moderation tallied in June was in line with market expectations. Overall inflation ticked down from 3.7% in May to 3.6% in June.

According to analysts, inflation eased slightly in June because April’s sales tax hike is taking a toll on economic growth and the weak yen’s impact on prices is fading.

Core inflation for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—was stable at the previous month’s 2.8% in July and just barely overshot the 2.7% that market analysts had expected.

The Bank of Japan (BoJ) expects that core inflation will be between 3.2% and 3.5% in the fiscal year ending March 2015. In the following fiscal year, the BoJ sees inflation falling to somewhere between 1.9% and 2.8%. FocusEconomics Consensus Forecast panelists expect inflation of 2.5% in the calendar year 2014, which is unchanged from last month’s estimate. In 2015, the panel sees inflation at 1.6%.


Author: Ricard Torné, Lead Economist

Sample Report

Looking for forecasts related to Inflation in Japan? Download a sample report now.

Download

Japan Inflation Chart


Japan Inflation June 2014

Note: Year-on-year and month-on-month var. of consumer price index in %.
Source: Statistics Bureau (SB) and FocusEconomics calculations.


Japan Economic News

  • Japan: Machinery orders decline in May

    July 11, 2018

    Although core machinery orders—a leading indicator of capital spending over a three- to six-month period—contracted in May, the fall was weaker-than-expected, suggesting that capital expenditure will gain steam further down the road.

    Read more

  • Japan: Business confidence weakens in Q2

    July 2, 2018

    According to the Bank of Japan’s quarterly Tankan business survey, sentiment among large manufacturers fell in the second quarter of 2018, suggesting economic momentum has yet to gain traction following a weak first quarter.

    Read more

  • Japan: Consumer confidence declines marginally in June

    June 29, 2018

    Consumer sentiment inched down to 43.7 in June from 43.8 in May, coming in just below market expectations of a stable print.

    Read more

  • Japan: Industrial production falls in May

    June 29, 2018

    Industrial production contracted 0.2% on a month-on-month and seasonally-adjusted basis in May, contrasting April’s revised 0.5% increase (previously reported: +0.3% month-on-month).

    Read more

  • Japan: Core inflation stable in May

    June 22, 2018

    The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in May, reversing April’s 0.1% fall. Core inflation was steady at 0.7% in May, unchanged from April and in line with market expectations.

    Read more

More news

Search form