Japan: Decline in core prices deepens to over five-year low in July
August 26, 2016
In July, the core consumer price index fell 0.2% compared to the previous month, which was below the flat reading in June. The print mainly reflected lower prices for fuel, light and water charges as well as for clothes and footwear.
Core prices were down 0.5% over the same month last year in July, which came in below the 0.4% drop recorded in June. The print exceeded the 0.4% decline expected by market analysts and was the lowest since March 2011. Overall consumer prices in July fell 0.4%, matching June’s 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 August over the same month last year, mirroring July’s figure.