MNI 5 THINGS: Japan June CPI Rise Slow on Mobile Discounts

--Japan June Core CPI +0.8% Y/Y; MNI Median +0.9%; May +0.7%

--Japan June Core-Core CPI +0.2% Y/Y; May +0.3% 

--Japan June CPI Mobile Communications -6.7% Y/Y; May -3.5%

--Japan June CPI Energy Costs +7.3% Y/Y; May +5.6% 

--Japan June CPI Food Ex-Perishables +0.7% Y/Y; May +1.1% 

--Japan June CPI Household Durable Goods -2.9% Y/Y; May -3.5% 

--Japan June CPI Electronics Goods -2.9% Y/Y; May -3.8% 

--Japan June CPI Accommodations +2.1% Y/Y; May -1.8% 

--Japan June CPI Overseas Holiday Tours +11.7% Y/Y; May +5.6%

     TOKYO (MNI) - The year-on-year rise in Japanese consumer prices accelerated

only slightly in June as higher energy and accommodations costs were offset by

deeper discounts on already lower mobile data communications fees and depressed

durable goods prices, data from the Ministry of Internal Affairs and

Communication released Friday showed.

     The key points from the latest CPI data:

     -- The national average core consumer price index (excluding fresh food)

rose 0.8% on year in June for the 18th straight year-on-year rise after rising

+0.7% in May.

     -- The CPI was weighed down by lower mobile communications charges due to

the base-year effect that will continue through July. Last August, some carriers

changed the fee structures, giving discounts to low data volume users. In

addition to this, a leading carrier began offering further discounts.

     -- The underlying inflation rate measured by the core-core CPI (excluding

fresh food and energy) rose 0.2% on year in May, slowing from +0.3% in May and

0.4% in April. It was the 12th consecutive year-on-year rise.

     -- The prices for services ranging from rents and restaurants to medicine

and communications rose 0.3% on year in June, up from +0.2% in May. The pace of

y/y increase remains slow as some companies are resisting price hikes amid tough

competition by investing in technology and curtailing business hours to cut

costs.

     -- Goods prices excluding volatile fresh food prices rose 1.4% on year in

June, accelerating from +1.2% in May. The prices for processed food (canned

food, bread, snacks, beverages, etc.), which accounts for about 15% of the total

CPI, rose 1.1% on year in June after +1.0% in May.

     -- The total CPI rose 0.7% on year in June, with the pace of increase

unchanged from the 0.7% rise in May.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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