0830 JST (2330 GMT/1930 EDT Thursday, May 21) The Ministry of Internal Affairs and Communications releases April CPI.
Mace News median: total CPI +1.8% y/y (range: +1.6% to +1.9%) vs. Mar +1.5%; core CPI (ex-fresh food) +1.7% y/y (range: +1.5% to +1.8%) vs. Mar +1.8%; core-core CPI (ex-fresh food, energy) +2.2% y/y (range +1.9% to +2.3%) vs. Mar +2.4%
By Chikafumi Hodo
TOKYO (MaceNews) – Japan’s nationwide core consumer price index, excluding fresh food, is expected to decelerate to a 1.7% rise on the year in April from 1.8% the previous month. The closely watched core measure is forecast to stay below the Bank of Japan’s 2% inflation target for a third straight month.
Consumer inflation has remained subdued as the government introduced new gasoline subsidies from mid-March, helping cushion the impact of higher international oil prices driven by persistent geopolitical tensions in the Middle East since February. CPI was also weighed down by slower food price inflation amid fading base effects.
Tokyo CPI, a leading indicator of the national trend, slipped below 2% across all three key measures in April as declines in energy prices and child daycare fees weighed on overall prices.
The two other key nationwide CPI measures are expected to show a mixed picture in April compared to the previous month. Overall CPI is forecast to rise 1.8% on the year in April after increasing 1.5% in March. Core-core CPI, which excludes both fresh food and energy, is seen edging down to 2.2% from 2.4% the previous month.