MNI DATA IMPACT: Tokyo June Core CPI Slow To 0.9% Y/Y

     TOKYO (MNI) - Tokyo's annual consumer inflation rate, a leading indicator

of the national average, slowed to 0.9% y/y in June on the back of lower energy

costs, according to data released Friday by the Ministry of Internal Affairs and

Communications.

     The following are the key points:

     --Tokyo's core consumer price index (excluding fresh food) rose 0.9%

year-on-year in June, slower than the 1.0% growth projected by an MNI survey and

1.1% y/y increase reported last month. It was the 26th straight monthly y/y rise

since the 0.1% gain seen in May 2017.

     --Core-core CPI (excluding fresh food and energy) -- a key indicator of the

underlying trend of inflation -- rose 0.8% on year in June in Tokyo, unchanged

from last month.

     --Energy costs decelerated to 3.5% in June from 5.7% last month,

contributing 0.18 percentage point to the total Tokyo CPI, lower from the

previous 0.30pp. Household durable goods prices slid to 7.9% y/y from 13.9% y/y

reported in May.

     --Processed food prices rose 1.2% y/y in June, the same as May. Portable

communication devices price slip further to -5.8% from -4.3% seen 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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