Japan: Core inflation stabilizes in July
August 29, 2014
In July, the core consumer price index, which excludes volatile fresh food prices, inched up 0.1% over the previous month. July’s result, which came in above the flat reading recorded in June, mainly reflected that higher prices for transportation and communication and for culture and recreation were nearly offset by lower prices for clothing and footwear and for furniture and household utensils.
Annual core inflation remained steady at the previous month’s 3.3% in July, which was in line with market expectations. Overall inflation ticked down from 3.6% in June to 3.4% in July.
Core inflation for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—inched down from 2.8% in July to 2.7% in August, which matched the result that market analysts had expected.