Japan: Core prices drop in March at fastest pace in nearly three years
April 28, 2016
In March, the core consumer price index rose 0.1% compared to the previous month, which was above the flat reading tallied in February. The print mainly reflected that much higher prices for clothes and footwear more than offset lower prices for fuel, light and water charges.
Core prices in March were down 0.3% over the same month last year, which was below the zero growth tallied in February. The print undershot the 0.2% decrease predicted by market analysts and represented the steepest drop since April 2013. Overall consumer prices in March fell from a 0.3% increase in February to a 0.1% decline.
Core prices for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—fell 0.4% in April over the same month of the previous year (March: -0.3% year-on-year), which exceeded the 0.2% drop that market analysts’ had expected.