MNI DATA IMPACT: Japan May Core CPI Slows To +0.8% Y/Y

     TOKYO (MNI) - Japan's core inflation slowed to an annual 0.8% in May from

April's 0.9%, with prices for energy and food decelerating, data from the

Ministry of International Affairs and Communication released Friday showed.

     Some notable points from the data:

     --May core consumer price index (excluding fresh food) rose for a 29th

consecutive month at 0.8% y/y, in line with the MNI survey. 

     --Overall CPI rose 0.7% y/y in May, down from 0.9% y/y in the previous

month. 

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

fresh food and energy) eased to 0.5% y/y, lower than the 0.6% y/y reported in

April, but marking the 23rd consecutive month of gains.

     --Energy costs slowed to 3.7% y/y in May, with a contribution of 0.29pp,

which having risen 4.6% last month contributing 0.35pp. 

     --Prices for food ex-perishable accelerated to 1.0% from April's 0.9%, with

prices for household durable goods also rising, up 7.8% from the 6.2% in April.

--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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