Japan Inflation May 2017


Japan: Core inflation inches up in May

June 30, 2017

In May, the core consumer price index was flat from the previous month in seasonally-adjusted terms, matching the result in the previous three months. May’s reading mainly reflected that higher prices for fuel, light and water charges were offset by lower prices for food and furniture and household utensils.

Core inflation rose from April’s 0.3% to 0.4% in May. The print was in line with what market analysts had expected and represented the highest rate since April 2015. Overall inflation came in at 0.4% in May, matching April’s result.

Core prices for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—were flat on an annual basis, down from May’s 0.1% rise.

The Bank of Japan (BoJ) expects that core inflation will be between 0.6% and 1.6% in the fiscal year ending March 2018. In the following fiscal year, the BoJ sees inflation between 0.8% and 1.9%. FocusEconomics Consensus Forecast panelists expect inflation of 0.6% in calendar year 2017, which is unchanged from last month’s estimate. In 2018, the panel sees inflation at 0.8%.

Author: Ricard Torné, Lead Economist

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Japan Inflation Chart

Japan Inflation May 2017 0

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

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