MNI BRIEF: Japan Nov Core CPI Rises 2.5% Vs. Oct's 2.9%

Japan's annual core consumer inflation rate decelerated to 2.5% y/y in November from October's 2.9%, the first slowdown in two months but remaining above the Bank of Japan's 2% target for the 20th straight month, data released by the Ministry of Internal Affairs and Communications showed on Friday.

The underlying inflation rate measured by the core-core CPI (excluding fresh food and energy) rose 3.8% y/y in November, also slowing from October's 4.0%, the third straight monthly deceleration. The negative contribution from energy items on CPI widened to -0.87 percentage points in November from -0.75 pp in October.

Prices excluding perishables rose 6.7% y/y in November, slowing from October’s 7.6%. Prices for processed foods, accounting for 15% of the total CPI and a key BOJ focus, 7.5% in November, slowing from October’s 8.6%, indicating pass-through of cost increases slowed. Services prices, another key BOJ focus used to determine the strengthen of the virtuous wage-price cycle, rose 2.3% y/y in November from October’s 2.1%.