MNI DATA IMPACT: Tokyo May Core CPI Edged Up; Energy Down

     TOKYO (MNI) - The annual consumer inflation rate in Tokyo, a leading

indicator of the national average, picked up for the first time in two months

with prices for food and household durables rising, according to data from the

Ministry of Internal Affairs and Communications released on Friday.

     These are the key points from the latest Tokyo CPI data:

     --The Tokyo core consumer price index (excluding fresh food) rose 0.2% y/y

in May, beating the MNI median forecast of a 0.2% y/y decline and the previous

month's 0.1% y/y fall. 

     --Energy costs fell 4.7% y/y following last month's 4.3% y/y drop. This

contributed a negative 0.26 percentage points to total Tokyo CPI compared with

the negative 0.24 percentage points seen in April.

     --Processed food prices rose 1.5% y/y, up from the previous 1.4% y/y gain,

contributing 0.33 percentage points to total CPI compared with the 0.30

percentage points contribution the previous month.

     --Prices for household durable goods fell 1.7% y/y, a sharp improvement

from April's 4.1% y/y drop. Prices for overseas tours fell 6.2% y/y, recovering

from the previous 11.7% y/y slump.

     --The core-core CPI (excluding fresh food and energy) -- a key indicator in

the underlying trend of inflation -- rose 0.5% y/y in Tokyo in May, up from last

month's 0.2% y/y growth.

--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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