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

--Japan Jan Tokyo Core CPI +0.7% Y/Y; MNI Median +0.8%; Dec +0.8% 

--Japan Jan Tokyo Core-Core CPI +0.9% Y/Y; Dec +0.9%

--Japan Jan Tokyo CPI Energy Costs -1.3% Y/Y; Dec -1.2% --Japan Jan Tokyo CPI

Food Ex-Perishables +1.9% Y/Y; Dec +1.8% 

--Japan Jan Tokyo CPI Household Durable Goods +0.4% Y/Y; Dec +3.9%

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

indicator of the national average, rose 0.7% y/y in January, propped up by high

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

Internal Affairs and Communications showed Friday.

     The gain slowed from +0.8% in December due to lower prices for household

durable goods on the back of weak consumer demand.

     The key points from the latest Tokyo CPI data:

     --The Tokyo core consumer price index (excluding fresh food) rose 0.7% y/y

in January, weaker than the MNI median economist forecast of +0.8%. This was the

31st straight y/y rise following +0.8% in December.

     --Energy costs decelerated to -1.3% in January from -1.2% in December. This

contributed a negative 0.07 percentage points to total Tokyo CPI in January,

higher than a negative 0.06 percentage points in December.

     --Tokyo saw processed food prices rise by 1.6% y/year in January after

+1.4% in December, pushing up the total CPI by 0.21 percentage points, up from

0.18 percentage points in December.

     --The core CPI was again supported by robust service prices, mainly prices

for eating-out, which rose 3.5% y/y in January following +3.5% in December.

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

the underlying trend of inflation -- rose 0.9% y/y in January in Tokyo,

unchanged from +0.9% in December.

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

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

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