Japan Inflation Rate Eases Further in June


Consumer prices in Japan rose 0.4 percent year-on-year in June of 2015, following a 0.5 percent increase in May. It is the lowest inflation since June of 2013, mainly due to a decline in cost of housing, fuel and transport and communication.

Year-on-year, prices of fuel, light and water charges recorded the highest decrease (-3.1 percent), followed by transportation and communication (-2.0 percent) and housing (-0.1 percent).

Upward pressures came mainly from cost of food (+ 2.5 percent), clothing and footwear (up 1.8 percent), education (+2.0 percent), education (+1.5 percent), medical care (+0.7 percent) and recreation and culture (+0.7 percent). 

Core consumer prices including oil products but excluding fresh food rose 0.1 percent in June from a year earlier, the same pace as in the previous month. The so-called core-core inflation which excludes food and energy prices rose 0.6 percent, accelerating from a 0.4 percent rise in May. 

On a monthly basis, the inflation rate dropped 0.2 percent in June from 0.3 percent increase in the previous month.

In Tokyo, consumer prices rose 0.2 percent year-on-year in July (0.3 percent in June). Core consumer prices fell 0.1 percent, following a 0.1 percent rise in June. It is the first annual decline since April 2013. Monthly inflation fell 0.2 percent, following 0.4 percent decline in the preceding month.

Japan Inflation Rate Eases Further in June


Statistics Bureau of Japan l Rida Husna l rida@tradingeconomics.com
7/31/2015 1:37:30 AM