Japan: Core inflation picks up slightly in March
April 30, 2015
In March, the core consumer price index, which excludes volatile fresh food prices, rose 0.4% over the previous month. The print contrasted the 0.1% drop tallied in February and mainly reflected a sizeable increase in prices for clothes and footwear and, to a lesser extent, for culture and recreation as well as for fuel, light and water charges.
Annual core inflation inched up from the previous month’s 2.0% to 2.2% in March. The print overshot the 2.0% that market analysts had expected. Overall inflation increased slightly from 2.2% in February to 2.3% in March.
Core inflation for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—fell sharply from 2.2% in March to 0.4% in April, which was a tad below the 0.5% that market analysts had expected. Inflation dropped markedly in April as the impact of last year’s sales tax hike has started to fade away.