Japan's consumer price inflation eased to 0.3 percent year-on-year in December 2018 from 0.8 percent in the previous month, in line with market expectations. It was the lowest inflation rate since October 2017, mainly due to declines in cost of food, housing and transport. On a monthly basis, consumer prices declined 0.2 percent in December, the same pace as in November. In 2018, the average inflation rate was 1 percent. Inflation Rate in Japan averaged 2.99 percent from 1958 until 2018, reaching an all time high of 24.90 percent in February of 1974 and a record low of -2.50 percent in October of 2009.

Inflation Rate in Japan is expected to be 0.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Japan to stand at 1.40 in 12 months time. In the long-term, the Japan Inflation Rate is projected to trend around 1.70 percent in 2020, according to our econometric models.

Japan Inflation Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-10-18 11:30 PM Inflation Rate YoY 1.2% 1.3% 1.1%
2018-11-21 11:30 PM Inflation Rate YoY 1.4% 1.2% 1.4% 1.2%
2018-12-20 11:30 PM Inflation Rate YoY 0.8% 1.4% 0.8% 1.4%
2019-01-17 11:30 PM Inflation Rate YoY 0.3% 0.8% 0.3% 0.6%
2019-02-21 11:30 PM Inflation Rate YoY 0.3% 0.5%
2019-03-21 11:30 PM Inflation Rate YoY 0.6%
2019-04-19 11:30 PM Inflation Rate YoY 0.9%



Japan Inflation Rate Slows to 14-Month Low

Japan's consumer price inflation eased to 0.3 percent year-on-year in December 2018 from 0.8 percent in the previous month, in line with market expectations. It was the lowest inflation rate since October 2017, mainly due to declines in cost of food, housing and transport. In 2018, the average inflation rate was 1 percent.

Prices of food declined by 1.1 percent from a year earlier in December, the first drop since November 2017, compared to a 0.5 percent rise a month earlier. Among food, cost fell for: vegetables & seaweeds (-12.7 percent vs -2.0 percent), of which fresh vegetables (-19.7 percent vs -4.5 percent); fruits (-0.3 percent vs 3.6 percent), of which fresh fruits (-0.7 percent vs 3.6 percent); and alcoholic beverages (-1.5 percent vs -1.1 percent). In addition, inflation slowed for: cooked food (0.1 percent vs 0.6 percent); cereals (1.0 percent vs 1.1 percent); dairy products & eggs (2.6 percent vs 2.8 percent); and meals outside the home (1.0 percent vs 1.1 percent). Meantime, prices of meat increased 0.1 percent, the same as in November; while those of fish & seafood rose 1.8 percent, faster than a 1.5 percent advance a month earlier, of which fresh fish & seafood (0.6 percent vs -0.2 percent).

Also, housing prices continued to decline (-0.1 percent, the same as in November) and cost of transportation & communication decreased 0.1 percent, the first fall since August 2017, compared to a 1.2 percent rise in November. At the same time, cost went up at a softer rate for culture & recreation (0.9 percent vs 1.0 percent), and miscellaneous goods & services (0.8 percent vs 0.9 percent); while inflation was unchanged for clothes & footwear (at 0.1 percent); education (at 0.5 percent); and fuel, light & water charges (at 5 percent), of which electricity (6.4 percent vs 5.6 percent), gas (4.8 percent vs 4 percent) and other fuel & light (12.2 percent vs 21.9 percent). Meanwhile, cost rose faster for medical care (1.3 percent vs 1.2 percent); and rebounded for furniture & household utensils (0.1 percent vs -0.7 percent).  

The country's annual core consumer inflation, which excludes fresh food, slowed to a seven-month low of 0.7 percent in December 2018 from 0.9 percent in the previous month, missing market expectations of 0.8 percent. The figure came in well below the Bank of Japan's 2 percent target ahead of next week's policy meeting, where the bank is seen cutting its price forecasts and warning of heightening global uncertainties.

On a monthly basis, consumer prices declined 0.2 percent in December, the same pace as in November.


Statistics Japan | Rida Husna | rida@tradingeconomics.com
1/18/2019 10:23:58 AM



Japan Prices Last Previous Highest Lowest Unit
Inflation Rate 0.30 0.80 24.90 -2.50 percent [+]
Inflation Rate Mom -0.20 -0.20 4.10 -1.10 percent [+]
Consumer Price Index CPI 101.50 101.80 102.00 17.40 Index Points [+]
Core Consumer Prices 101.40 101.30 101.60 31.00 Index Points [+]
Core Inflation Rate 0.70 0.90 24.70 -2.40 percent [+]
GDP Deflator 101.10 104.10 120.00 87.80 Index Points [+]
Producer Prices 101.50 102.10 112.50 47.40 Index Points [+]
Export Prices 96.50 97.90 207.30 84.10 Index Points [+]
Import Prices 100.30 104.40 190.40 45.90 Index Points [+]
Food Inflation -1.10 0.50 31.60 -3.70 percent [+]
CPI Housing Utilities 99.60 99.60 102.20 25.50 Index Points [+]
CPI Transportation 99.10 100.00 104.40 38.50 Index Points [+]
Producer Prices Change 1.50 2.30 33.90 -8.60 percent [+]


Japan Inflation Rate

In Japan, the most important categories in the consumer price index are Food (25 percent of total weight) and Housing (21 percent). Transportation and communications accounts for 14 percent; Culture and recreation for 11.5 percent; Fuel, light and water charges for 7 percent; Medical care for 4.3 percent; Clothes and footwear for 4 percent. Furniture and household utensils, Education and Miscellaneous goods and services account for the remaining. This page provides the latest reported value for - Japan Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Japan Inflation Rate - actual data, historical chart and calendar of releases - was last updated on January of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
0.30 0.80 24.90 -2.50 1958 - 2018 percent Monthly
2015=100




Country Last Previous
Argentina 47.10 Dec/18
Australia 1.90 Sep/18
Brazil 3.75 Dec/18
Canada 2.00 Dec/18
China 1.90 Dec/18
Euro Area 1.60 Dec/18
France 1.60 Dec/18
Germany 1.70 Dec/18
India 2.19 Dec/18
Indonesia 3.13 Dec/18
Italy 1.10 Dec/18
Japan 0.30 Dec/18
Mexico 4.83 Dec/18
Netherlands 2.00 Dec/18
Russia 4.30 Dec/18
Saudi Arabia 2.20 Dec/18
Singapore 0.50 Dec/18
South Africa 4.50 Dec/18
South Korea 1.30 Dec/18
Spain 1.20 Dec/18
Switzerland 0.70 Dec/18
Turkey 20.30 Dec/18
United Kingdom 2.10 Dec/18
United States 1.90 Dec/18


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