Japan Inflation March 2016

Japan

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.

The Bank of Japan (BoJ) expects that core inflation will be between 0.0% and 0.8% in the fiscal year ending March 2017. In the following fiscal year, the BoJ sees inflation between 1.8% and 3.0% and somewhere between 0.8% and 2.0%, excluding the effects of the expected consumption tax hike in April 2017. FocusEconomics Consensus Forecast panelists expect inflation of 0.3% in the calendar year 2016, which is unchanged from last month’s estimate. In 2017, the panel sees inflation at 1.6%.


Author: Ricard Torné, Lead Economist

Sample Report

Looking for forecasts related to Inflation in Japan? Download a sample report now.

Download

Japan Inflation Chart


Japan Inflation March 2016

Note: Year-on-year and month-on-month var. of consumer price index in %.
Source: Statistics Bureau (SB) and FocusEconomics calculations.


Japan Economic News

  • Japan: Core inflation inches up in June

    July 20, 2018

    The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in June, up from May’s flat reading. Core inflation was up a notch to 0.8% in June from 0.7% in May, which was in line with market expectations.

    Read more

  • Japan: Machinery orders decline in May

    July 11, 2018

    Although core machinery orders—a leading indicator of capital spending over a three- to six-month period—contracted in May, the fall was weaker-than-expected, suggesting that capital expenditure will gain steam further down the road.

    Read more

  • Japan: Business confidence weakens in Q2

    July 2, 2018

    According to the Bank of Japan’s quarterly Tankan business survey, sentiment among large manufacturers fell in the second quarter of 2018, suggesting economic momentum has yet to gain traction following a weak first quarter.

    Read more

  • Japan: Consumer confidence declines marginally in June

    June 29, 2018

    Consumer sentiment inched down to 43.7 in June from 43.8 in May, coming in just below market expectations of a stable print.

    Read more

  • Japan: Industrial production falls in May

    June 29, 2018

    Industrial production contracted 0.2% on a month-on-month and seasonally-adjusted basis in May, contrasting April’s revised 0.5% increase (previously reported: +0.3% month-on-month).

    Read more

More news

Search form