Japan: Core inflation returns to Japan in January
March 3, 2017
In January, the core consumer price index decreased 0.2% compared to the previous month, coming in below December’s flat reading. The print mainly reflected lower prices for clothing and footwear, as well as recreational goods and services.
Core inflation hit 0.1% in January from the same month a year earlier, which followed December’s 0.2% drop and was the first positive reading in nearly two years. The upswing came in ahead of market analysts’ expectations of a flat reading. Overall inflation came in at 0.4% in January, above December’s 0.3%.
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 February from the same month last year (January: -0.3% year-on-year).
Author: Christopher Thomas, Economist