MNI DATA IMPACT: Feb Tokyo Core CPI Slows; Service Prices Up

     TOKYO (MNI) - The annual consumer inflation rate in Tokyo, a leading

indicator of the national average, slowed down in February, propped up by high

prices for food ex-perishables and services, data from the Ministry of Internal

Affairs and Communications showed Friday.

     The key points from the latest Tokyo CPI data:

     --The Tokyo core consumer price index (excluding fresh food) rose 0.5% y/y

in February, weaker than the MNI median economist forecast of 0.6% y/y. This was

the 32st straight y/y rise following 0.7% y/y growth in January.

     --Energy costs dipped further by -3.0% y/y from -1.3% y/y recorded in

January. This contributed a negative 0.16 percentage points to total Tokyo CPI,

higher than a negative 0.07 percentage points in the previous month.

     --Processed food prices rose by 2.0% y/y, compared with January's 1.9% y/y

gain, pushing up the total CPI by 0.41 percentage points, the same as for last

month.

     --Prices for eating-out rose 3.4% y/y in February following +3.5% in

January, marking the biggest hike among service prices.

     --The core-core CPI (excluding fresh food and energy) -- a key indicator in

the underlying trend of inflation -- rose 0.7% y/y in February in Tokyo, slower

than 0.9% for the previous month.

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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