Japan Inflation Rate At 1-1/2-Year High Of 0.5%


Consumer prices in Japan increased 0.5 percent year-on-year in November of 2016, following 0.1 percent growth in the previous month. It is the highest inflation rate since May 2015, boosted by higher fresh food prices. However, core consumer prices which exclude fresh food went down 0.4 percent, the ninth straight month of annual declines and worse than market expectations of 0.3 percent drop.

Year-on-year, food prices went up 3.6 percent, following a 2.3 percent increase in October. It is the biggest rise since March 2015, boosted by an 21.6 percent jump in fresh food cost, namely a 37.3 percent rise in fresh vegetables and a 12.7 percent increase in fresh fruit. Inflation eased for recreation and culture (0.8 percent compared to 1 percent in October); medical care (0.9 percent from 1 percent) and clothing and footwear (1 percent from 1.2 percent in October).

In addition, prices declined at a slower pace for fuel, light and water charges (-5.8 percent compared to -6 percent in October) and transportation and communication (-1.5 percent compared to -1.7 percent in October) but fell at the same pace for housing (-0.2 percent).

On a monthly basis, consumer prices were flat, following a 0.6 percent gain in October. 

In Tokyo, consumer prices remained unchanged, following a 0.5 percent gain in November. Core consumer prices, which exclude fresh food, declined 0.6 percent from a year earlier, following a 0.4 percent drop in a month earlier and worse than market estimates of 0.4 percent drop. 

Statistics Japan l Yekaterina Guchshina | yekaterina@tradingeconomics.com
12/26/2016 11:58:21 PM