Japan: Inflation slows in June, but remains positive
July 28, 2011
In June, the core consumer price index, which excludes volatile fresh food prices, declined a seasonally adjusted 0.3% over the previous month, down from the flat reading recorded in May. As a result, annual core inflation edged down from 0.6% in May to 0.4% in June. Nevertheless, inflation remained in positive territory for the third straight month, mainly due to higher energy price. The June figure came in slightly below market expectations of a 0.5% rise. Meanwhile, so-called core core inflation index, which also excludes energy prices, remained flat in June over the previous month. Annual overall inflation inched down in June to 0.2%, which was slightly below the previous month's 0.3% and matched market expectations. Meanwhile, the Internal Affairs ministry announced a change in the base year, which will shift from 2005 to 2010 and will be seen in next month's result. The ministry will release revised CPI figures for the period between January and June using the new base year.