Japan Inflation January 2017


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).

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 0.9% and 1.9%. FocusEconomics Consensus Forecast panelists expect inflation of 0.7% in calendar year 2017, which is up 0.1 percentage points from last month’s estimate. In 2018, the panel sees inflation at 0.9%.

Author:, Economist

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Japan Inflation Chart

Japan Inflation January 2017

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

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