Japan: Core inflation stabilizes in July
August 27, 2018
The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in July, matching June’s result.
Core inflation stabilized at June’s 0.8% in July, which was below market expectations of 0.9%. Therefore, inflation remains well below the Bank of Japan’s inflation target of 2.0%. Overall inflation rose from June’s 0.7% to 0.9% in July, marking a four-month high.
Core inflation for Tokyo rose from 0.7% in June to 0.8% in July. Data on core inflation for Tokyo for August will be released on 31 August.
Japan Inflation Forecast
The median inflation forecast among BoJ members is 1.3% for FY 2018 and 2.3% for FY 2019. Last month, FocusEconomics Consensus Forecast panelists expected inflation of -% in calendar year 2018, which was from the previous month’s estimate. In 2019, our panelists saw inflation at -%.