Japan Inflation


Japan: Deflation moderates amid higher tobacco taxes

November 26, 2010

In October, the core consumer price index, excluding fresh food, added 0.4% over the previous month. The reading came in above the previous month's flat result but was in line with market expectations. The monthly price hike was mostly fueled by higher prices for cigarettes (+38.6% month-on-month) as a result of an increase in tobacco taxes. Owing to the high monthly reading, annual core inflation jumped from minus 1.1% in September to minus 0.6% in October. Meanwhile, the overall consumer price index also recorded a 0.4% month-on-month increase, which drove annual inflation to 0.2%. The reading marked the first time overall consumer inflation reached positive territory since December 2008. The Bank of Japan (BoJ) projects core consumer prices to drop an average of 0.4% in the current fiscal year, which ends in March 2011. In the next fiscal year, the Bank of Japan sees the economy edging out of deflation, with core consumer rising by 0.1% before adding a more meaningful 0.6% in fiscal 2012. However, even in 2012 inflation will remain below the 1.0% considered price stability by the BoJ.


Sample Report

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


Japan Economic News

  • 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

  • Japan: Core inflation stable in May

    June 22, 2018

    The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in May, reversing April’s 0.1% fall. Core inflation was steady at 0.7% in May, unchanged from April and in line with market expectations.

    Read more

More news

Search form