Japan: Core inflation remains at zero in February
March 25, 2016
In February, the core consumer price index was flat compared to the previous month, which was above the 0.7% drop in January. The print mainly reflected that sharp drops in prices for fuel, light and water charges, transportation and communications as well as for furniture and household utensils were offset by an increase in costs for culture and recreation, food and clothes and footwear.
Core prices in February were flat over the same month last year, which matched the result tallied in January. The print undershot the 0.1% increase predicted by market analysts. Overall inflation in February rose from zero in January to 0.3% in February.
Core prices for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—fell 0.3% in March over the same month of the previous year (February: -0.1% year-on-year), which exceeded the 0.2% drop that market analysts’ had expected.