MNI DATA IMPACT: Japan May Core CPI Stable; Energy Down

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

for two months in a row, 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 by 0.2% y/y in May for a second monthly fall after the same result in

April. The result came in lower than MNI's projection of a 0.1% y/y decline. 

     -- Energy costs dipped further by 6.7% y/y after the 4.7% y/y fall last

month, contributing -0.54 percentage points to CPI against -0.37 percentage

points in April.

     --Overall CPI increased 0.1% y/y in May, the same as the gain registered

the previous month.

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

fresh food and energy) rose 0.4% y/y, quicker than the 0.2% y/y increase last

month.

     -- Prices for ex-perishables grew 1.4% y/y in May, up from 1.3% y/y in

April. Prices for household spending fell 1.3% y/y, faster then the previous

0.5% y/y fall. Overseas holiday tour prices dropped 6.2% y/y, improving from the

previous 11.7% y/y decrease.

--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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