MNI DATA IMPACT: Japan June Core CPI Slows To +0.6% Y/Y

     TOKYO (MNI) - Japan's core inflation slowed to an annual 0.6% y/y in June

from 0.8% y/y reported in May, 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:

     --June core consumer price index (excluding fresh food) slowed for a third

straight month to 0.6% y/y, following 0.8% y/y growth in May and 0.9% growth in

April. June CPI was in line with the MNI survey. 

     --Overall CPI rose 0.7% y/y in June, unchanged from the previous month. 

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

fresh food and energy) grew 0.5% y/y, the same rate as in May, marking the 24th

consecutive month of gains.

     --Energy costs eased to 1.2% y/y from 3.7% y/y in the previous month, with

its contribution to overall CPI down to 0.09pp from 0.29pp, leading the slowdown

of the index. Prices for household durable goods slid to 5.1% y/y in June from

previous 7.8% y/y. 

     --Prices for food ex-perishable rose 1.2% y/y, following May's 1.0%

increase, and prices for accommodation quickened to 2.1% from the 0.2% drop in

May.

--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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