Japan’s Consumer Prices Extends Decline in October

Japan's consumer prices logged its eighth consecutive month of annual declines in October, highlighting how far the country is from overcoming deflation.

Official government data showed core consumer price index fell 0.4% in October year-on-year after a 0.5% decline in September. The October figures also matched estimates. Meanwhile, overall CPI edged up 0.1% as a rise in fresh food prices offset the continued decline in energy costs.

Prices of fresh food rose 11.4% in October due to calamities and unfavorable summer weather, which attributed almost 0.5 percentage point to the increase in total CPI. However, energy costs fell 7.9%, pulling down inflation by around 0.6 percentage point.While declining prices of gasoline and electricity continued to pressure inflation rates, almost 60% of all items composing the index saw an increase in prices, data revealed.

Core-core Inflation Index, which does not include the volatile prices of food and energy, advanced 0.2% in October from a year-prior period, higher than the forecast of a 0.1% rise. However, soft domestic activity raises doubt on the possibility of a sustained recovery.

News are provided by InstaForex


News are provided by InstaForex