Japan Inflation

Japan

Japan: Inflation rises slightly on the back of higher energy prices

August 26, 2011

In July, the core consumer price index, which excludes volatile fresh food prices, increased a seasonally-adjusted 0.1% over the previous month, rebounding from a 0.3% drop in June. As a result, annual core inflation rose from a minus 0.3% in June to a plus 0.1% in July, overshooting market expectations of a 0.1% drop. Inflation sprang into positive territory for the first time since February 2009, mainly due to higher energy prices. Similarly, annual overall inflation bounced back into the black after 30 months. In July, inflation rose 0.2% year-on-year (June: -0.4% yoy).


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