Japanese national consumer price index (CPI) surprisingly rose in October

Japanese national consumer price index (CPI) surprisingly rose in October

  • BUz Investors Japanese national consumer price index The national consumer price index (CPI) recorded an unexpected rise of 0.10% in Japan, on a YoY basis in October, higher than market expectations for an unchanged reading. In the prior month, the national consumer price index (CPI) had dropped 0.50%.
  • Consumer Price Index CPI in Japan averaged 73.38 Index Points from 1957 until 2016, reaching an all time high of 104.50 Index Points in October of 1998 and a record low of 18 Index Points in February of 1957.
  • As the BoJ has been pointing out, the ongoing tightening in the labor market condition should eventually lead to a wage inflation. However, we have been waiting for such wage inflation to surface for more than 2 years by now. The unemployment rate was already as low as 3.6% in early 2014. While the unemployment rate is now even lower, the inflationary expectation has subsided, lessening the pressure for labor to demand higher wages.
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Japanese national consumer price index

Japanese national consumer price index (CPI) surprisingly rose in October

Consumer Price Index (CPI) measures the weighted average price level of goods and services consumers pay. Its weights are determined by the spending pattern of household in a standard year, currently set at 2015. The Bank of Japan targets its core measure, CPI excluding fresh food. The US-styled core measure, CPI excluding food and energy, is also published in the official statistics release.

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Japanese national consumer price index

The government currently does not officially publish trimmed CPI measures. Monthly CPI reports are published toward the end of the following month. The preliminary CPI report for Tokyo area is published one month in advance and it is often regarded as a leading indicator for the national CPI.

Since late 1990s, CPI in Japan has been on a very mild declining trend. Between 1998 and 2012, CPI fell by 3.9% or by 0.3% per year on average. Excluding food and energy, CPI declined by 6.4%, or by 0.6% per year on average in the same period. Japan had unusually lower CPI inflation than its global peers even prior to 1998. Between 1980 to 2000, average yearly inflation in Japan was 1.4%, sizably lower than the average of 3.6% in G7 countries.

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Richard Dambrosi (JADTECNIC) Has Been Sharing FOREX INVESTORS ANALYSIS FORECAST since 2011. Editors and Founder of InvestorsBuz.com, has a passion for Forex Social Sharing analysis and Market Trends Such as Self Driving Cars, Electric Cars, Medical Marijuana, 3d printing and Cloud computing, Refers to Readers as BUZ INVESTORS.

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