MNI BRIEF: Japan Sept Tokyo Core CPI Rises 2.0% Vs. Aug 2.4%
MNI (BEIJING) - Tokyo’s core inflation rate rose 2.0% y/y in September, slower than August’s 2.4%, marking the first deceleration in five months but stayed above 2% for the fourth straight month, data from the Ministry of Internal Affairs and Communications showed on Friday.
September’s slowdown was driven by lower energy prices (+9.5% vs. +17.4%) and households’ durable goods (+8.1% vs. +11.2%).
The September data likely eases BOJ concerns over the upside risk to prices, but bank officials are focused on October price revisions to determine the strength of the wage-price cycle.
Core-core CPI, which excludes fresh food and energy and is a key indicator of underlying inflation trends, rose 1.6% y/y in September, unchanged from August and below the bank’s 2% target for the sixth straight month.
Processed food prices, which BOJ officials watch closely and are sensitive to economic activity, rose 2.0% in September, slowing from 2.5% in August, with services prices up 0.6% in September vs. August’s 0.7%.