MNI DATA IMPACT: Japan July Core CPI Steady At +0.6% Y/Y

     TOKYO (MNI) - Japan's core inflation remained at 0.6% y/y in July, with

prices for energy and household durable goods decelerating, data from the

Ministry of International Affairs and Communication released Friday showed.

     Some notable points from the data:

     --July core consumer price index (excluding fresh food) rose 0.6% y/y,

unchanged from June and lower than the 0.8% growth in May. July CPI was in line

with the MNI survey. 

     --Overall CPI rose 0.5% y/y in July, slower than June's 0.7% y/y growth.

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

fresh food and energy) grew 0.6% y/y, faster than the 0.5% y/y posted in June,

marking the 25th consecutive month of gains.

     --Energy costs decelerated to 0.6% y/y from 1.2% y/y in the previous month,

with its contribution to overall CPI down to 0.04pp from 0.09pp, leading the

slowdown of the index. Prices for household durable goods slid to 3.8% y/y in

July from previous 5.1% y/y. 

     --Prices for food ex-perishable rose 1.2% y/y, unchanged from the June

increase, and prices for portable communication equipment quickened to 0.2% from

the 9.1% drop last month.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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