Japan: Drop in core prices stabilizes in August
September 30, 2016
In August, the core consumer price index was flat compared to the previous month, which was above the 0.2% decline in July. The print mainly reflected that lower prices for clothes and footwear as well as for fuel, light and water charges were offset by higher prices for culture and recreation.
Core prices were down 0.5% over the same month last year in August, which matched July’s reading. The print was in line with the result expected by market analysts. Overall consumer prices fell 0.5% in August, which was below July’s 0.4% drop.
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 September over the same month last year (July: -0.4% year-on-year).