Japan Inflation Rate at 33-Month High of 1% in December


Consumer prices in Japan rose by 1 percent year-on-year in December of 2017, after a 0.6 percent gain in the prior month while markets estimated 1.1 percent. It was the highest inflation rate since March 2015, mainly driven by a jump in cost of food.

In December, prices of food increased by 1.8 percent year-on-year, recovering from a 0.1 percent fall in November and 1.3 drop in October. It was the highest food inflation since December 2016 as cost increased for fresh food (5.1 percent from -4.7 percent), fish and seafood (4.1 percent from 3.5 percent) and fresh fruits (8.9 percent from 8 percent). Meantime, prices fell less for dairy product and eggs (-1 percent from -1.5 percent).

Also, cost increased at a faster pace for: culture and recreation (0.4 percent from 0.3 percent) and miscellaneous (0.7 percent from 0.5 percent), while inflation was steady for: fuel, light and water charges (5.2 percent, as cost of  of electricity went up by 6.4 percent, following a 6 percent rise in the prior month); medical care (1.6 percent); transport & communication (0.8 percent) and education (0.4 percent). 

On the other hand, prices continued to fall for: housing (-0.1 percent from -0.1 percent); furniture and household utensils (-0.9 percent from -0.5 percent) and clothes and footwear (-0.3 percent from -0.3 percent).  

Core inflation rate, which exclude fresh food, remained at 0.9 percent, it highest since March of 2015.

On a monthly basis, consumer prices went up 0.2 percent, compared to a 0.7 percent increase in the preceding month.

In Tokyo, consumer prices rose 1.3 percent year-on-year in January 2018 while markets estimated a 1.1 percent rise. Core consumer prices, which exclude fresh food went up by 0.7 percent, slightly below expectations of a 0.8 percent gain.


Japan Inflation Rate at 33-Month High of 1% in December


Statistics Japan l Rida Husna | rida@tradingeconomics.com
1/26/2018 11:33:40 AM