MNI DATA IMPACT: Japan Apr Core CPI Negative; Energy Down

     TOKYO (MNI) - Japan's annual core consumer inflation rate has fallen into

negative territory for the first time in three years, led by rapid falls in

energy prices, according to data from the Ministry of International Affairs and

Communication released on Friday.

     The key points from the latest CPI data:

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

declined 0.2% y/y in April, down from the previous 0.4% y/y growth, ending a run

of 39 consecutive monthly rises. The result came in lower than MNI's projection

of a 0.1% y/y decline. 

     -- Energy costs dipped further by 4.7% y/y after the 1.7% y/y fall reported

last month, contributing -0.37 percentage points to CPI against the -0.13

percentage point contribution last month.

     --Overall CPI increased 0.1% y/y in April, down from the 0.4% y/y gain

registered in March.

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

fresh food and energy) rose 0.2% y/y, significantly lower than the 0.6% y/y

increase last month.

     -- Prices for ex-perishables grew 1.3% y/y in April, down from 1.6% y/y in

March. Prices for household spending fell 0.5% y/y, slowing down from the

previous 0.0% y/y reading. Overseas holiday tour prices dropped 11.7% y/y, much

lower than the previous 5.9% y/y.

--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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