Japan: Core prices decline at fastest pace in over three years in May
July 1, 2016
In May, the core consumer price index rose 0.1% compared to the previous month, which was below the 0.3% rise tallied in April. The print mainly reflected higher prices for culture and recreation, furniture and household utensils as well as for fuel, light and water charges.
Core prices in May were down 0.4% over the same month last year, which exceeded the 0.3% drop tallied in the previous month. The print matched the result predicted by market analysts and represented the steepest drop since April 2013. Overall consumer prices fell from a 0.3% year-on-year decline in April to a 0.4% decrease in May.
Core prices for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—fell 0.5% in June over the same month of the previous year (May: -0.5% year-on-year), which was in line with the result that market analysts’ had expected.