Japan’s core consumer prices rose 2.3% in September, down from July and August

November 3, 2008
By Ken Worsley

In both July and August, Japan’s core consumer prices saw a 2.4% rise. According to data released at the end of last week, core consumer prices rose at a 2.3% pace in September. Core consumer prices have now risen for 12 straight months.

As Japan includes energy prices as part of its core CPI, it’s also helpful to look at what the CPI looks like with energy stripped out. Here’s a breakdown of CPI categories for September:

September general nationwide consumer price index: +2.1% (+2.1% in August)
September general nationwide consumer price index (excluding rent): +2.4% (+2.5% in August)
September nationwide core CPI (excluding fresh food): +2.3% (+2.4% in August)
September nationwide consumer price index (excluding fresh food and energy): +0.2 (+0.0% in August)

In August, we saw CPI flat when fresh food and energy were both stripped out. This figure returned to positive territory in September, showing the same +0.2% increase. Excluding food and energy, the OECD average in September was a 2.4% increase, a figure which also increased from the previous month (+2.3%).

A breakdown of price increase by major categories:

Fuel, light and water charges +9.2% (Previous: +9.7%)
Transportation and communication +3.8% (+4.7%)
Food +3.0% (+3.0%)
Education +0.6% (+0.7%)
Miscellaneous +0.5% (+0.4%)
Clothes and footwear +0.5% (+0.3%)
Furniture and household utensils +0.4 (+0.2%)
Housing +0.2% (+0.2%)
Medical Care +0.1% (-0.5%)
Reading and recreation -0.3% (-0.4%)

The only category to switch sides was “Medical Care,” which left “Reading and recreation” as the only category showing a decline. We also see fuel and transportation prices dropping, a trend which is expected to continue next month.

Filed Under Consumer Price Index, Economic Reports