Adjusted Japanese core CPI decelerates, but energy prices up
After adjusting for the effect of the April sales tax hike (subtracting 2.0% points from May CPI and 1.7% points for April CPI), last Friday’s nationwide core CPI, which excludes fresh food prices, decelerated slightly to 1.4% y/y from 1.5% y/y in May. This deceleration was less than UBS Economics had anticipated, due primarily to rising energy costs, with fuel, light and water CPI up 8.9% y/y and 4.2% m/m (Figure 1).
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