Japan: Core inflation unchanged in December
January 29, 2016
In December, the core consumer price index, which excludes volatile fresh food prices, fell 0.2% compared to the previous month, which was slightly the flat reading tallied in November. The print, which hit an 11-month low, mainly reflected a sizeable drop in prices for clothes and footwear as well as for transportation and communication.
Core inflation in December was unchanged at last month’s 0.1%. The print was in line with the result predicted by market analysts. Overall inflation in December fell from 0.3% in November to 0.2%.
Core prices for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—fell 0.1% in January over the same month of the previous year (December: +0.1% year-on-year), which contrasted the 0.1% rise that market analysts’ had expected.