Deflation continues in Japan
Tokyo Nov core CPI down 0.2 pct mth-on-mth; nationwide Oct CPI unchanged
Friday, November 26, 2004 12:07:59 AM
afxpress.com
TOKYO (AFX) - The metropolitan Tokyo core consumer price index (CPI), a leading indicator of nationwide price trends, fell 0.2 pct from the previous month, the Ministry of Internal Affairs and Communications said
Year-on-year, the Tokyo area core rate fell 0.3 pct, the 62nd straight monthly decline, showing Japan remains troubled by deflation. That index fell 0.3 pct in October
The year-on-year decline in November was worse than the 0.2 pct drop expected in a Nihon Keizai Shimbun survey of 22 brokerages and research houses. All 22 organizations forecast declines, with the estimates ranging from minus 0.3 pct to minus 0.1 pct. The core rate excludes volatile fresh food prices, and thus gives a clearer picture of the underlying rate of inflation or deflation
Including fresh food prices, Tokyo area consumer prices in November fell 0.1 pct month-on-month
Year-on-year, the overall consumer price index for Tokyo rose 0.6 pct in November, after rising 0.3 pct in October, the first rise in 62 months
The ministry also released nationwide CPI data for October
On a nationwide basis, the core rate was unchanged from the previous month, following rises in three of the previous four months
Year-on-year the core rate -- the Bank of Japan's primary measure of price trends -- fell 0.1 pct, less than expected. The average of estimates in the Nikkei survey of 22 research houses foresaw a 0.2 pct drop. The estimates ranged from minus 0.3 pct to unchanged. The Bank of Japan has declared it will maintain its ultra-easy credit stance, under which it seeks to keep short-term interest rates near zero in an effort to stem deflation, until the core CPI remains above zero for a prolonged period, shows no signs of dropping and the economy is growing
The nationwide core rate was unchanged in September, after falling 0.2 pct in both August and July and by 0.1 pct in June, all from year-earlier levels
The index for overall prices nationwide in October rose 0.5 pct month-on-month, after rising in three of the previous four months
Year-on-year it rose 0.5 pct, after remaining unchanged in September, falling 0.2 pct in August and by 0.1 pct in July, and remaining unchanged in June |
