Japan: Core inflation moderates in April
May 18, 2018
In April, the core consumer price index fell 0.1% compared to the previous month in seasonally-adjusted terms, matching March’s 0.1% drop.
Core inflation edged down from 0.9% in March to 0.7% in April. The print was below market projections of a 0.8% rise. Overall inflation declined from 1.1% in March to 0.6% in April, falling further from the Bank of Japan’s 2.0% target.
Core inflation for Tokyo moderated from 0.8% in March to a five-month low of 0.6% in April. Data on core inflation for Tokyo in May will be released on 25 May.
Japan Inflation Forecast
The median inflation forecast among BoJ members is 1.3% for FY 2018 and 2.3% for FY 2019. FocusEconomics Consensus Forecast panelists expect inflation of 1.1% in calendar year 2018, which is up 0.1 percentage points from last month’s estimate. In 2019, our panelists see inflation at 1.3%.