Japan Inflation Rate Eases Further in July


Consumer prices in Japan rose 0.2 percent year-on-year in July of 2015, following a 0.4 percent increase in June and matching market consensus, mainly due to a further decline in cost of housing, fuel and transport and communication.

Year-on-year, prices of fuel, light and water charges recorded the highest decrease (-4.7 percent), followed by transportation and communication (-2.3 percent) and housing (-0.1 percent).

Upward pressures came from: cost of food (+ 2.5 percent), furniture and household utensils (+1.3 percent), clothing and footwear (+1.4 percent), medical care (+0.8 percent), education (+1.4 percent), education (+1.5 percent), culture and recreation (+1.2 percent) and miscellaneous (+0.7 percent).

Core consumer prices including oil products but excluding fresh food remaining flat in July from a year earlier, following a 0.1 percent increase in the previous month. The so-called core-core inflation which excludes food and energy prices rose 0.6 percent, the same as in June.

On a monthly basis, the inflation rate dropped 0.1 percent in July from 0.2 percent fall in the previous month.

In Tokyo, consumer prices rose 0.1 percent year-on-year in August, following a 0.2 percent rise in July. Core consumer prices fell 0.1 percent in August, following a 0.1 percent drop in a month earlier and it is the second annual decline since April 2013. Monthly inflation accelerated 0.2 percent, following a 0.2 percent decline in the preceding month.

Japan Inflation Rate Eases Further in July


Statistics Bureau of Japan l Rida Husna l rida@tradingeconomics.com
8/28/2015 2:36:17 AM