Japan: Core inflation slows in May
June 21, 2019
The core consumer price index fell 0.1% in month-on-month seasonally-adjusted terms in May, contrasting April’s 0.1% increase.
Core inflation declined from April’s 0.9% to 0.8% in April. The reading was in line with the result that market analysts had expected. Therefore, inflation remained well below the Bank of Japan’s inflation target of 2.0%. Overall inflation fell from April’s 0.9% to 0.7% in May.
Core inflation in the Ku-area of Tokyo fell from April’s 1.3% to 1.1% in May. Data for June will be released on 28 June.
Japan Inflation Forecast
The median inflation forecast among BoJ members is 1.1% for FY 2019 and 1.5% for FY 2020, including the effects of the consumption tax hike. FocusEconomics Consensus Forecast panelists expect inflation of 0.9% in calendar year 2019, which is down 0.1 percentage points from last month’s estimate. In 2020, the panel sees inflation at 1.3%.
Author: Ricard Torné, Lead Economist
