Tokyo core CPI falls 0.2 pct in fiscal year to March -
[The price of Chinese cabbage is up however - Mish]
Friday, March 25, 2005 2:09:55 AM
afxpress.com
(Adds fiscal year figures, details)
TOKYO (AFX) - The metropolitan Tokyo core consumer price index (CPI), a leading indicator of price trends throughout Japan, fell 0.2 pct in the fiscal year to March 2005, the sixth straight year of decline, a provisional report released by the Ministry of Internal Affairs and Communications shows
But the same report said deflationary pressure was easing, as the headline figure was the smallest decline in five fiscal years. And for three straight fiscal years, the size of the fall has been decreasing, the report said
The core rate excludes volatile fresh food prices, and thus gives a clearer indication of the underlying rate of deflation
The Bank of Japan has declared that it will maintain its ultra-easy credit stance, under which it seeks to keep short-term interest rates near zero in an effort to stem deflation, until the core national CPI remains above zero for a prolonged period, shows no signs of dropping and the economy is steadily growing
The metropolitan Tokyo overall CPI fell 0.1 pct in the year to March, the sixth straight year of decline. It was the smallest fall in six years
Despite signs that deflation is easing, an official of the Ministry of Internal Affairs and Communications said it is "premature to conclude that the CPIs will show a year-on-year rise in the new fiscal year." Tatsushi Shikano, an economist at UFJ Research Institute, remarked: "Although the data confirmed that the degree of deflation is easing, it will be difficult for the core CPI to form a solid rising trend, especially because macro-economic activity in Japan is deteriorating." Notebook PCs led the fall in the metropolitan Tokyo overall CPI, with their prices dropping by 29.0 pct, followed by the prices of desktop PCs, down 27.9 pct. Prices of TVs declined by 8.3 pct
Prices of Chinese cabbage jumped 33.3 pct and prices of ordinary cabbage rose 21.7 pct because of the weather last autumn
Reflecting surging crude oil prices, prices of regular gasoline jumped 8.8 pct and prices of premium gasoline increased by 7.9 pct
The metropolitan Tokyo core CPI rose 0.4 pct in March from the previous month, while falling 0.5 pct from a year before, the 66th straight month of decline. The index fell 0.5 pct in both January and February
Including fresh food prices, metropolitan Tokyo consumer prices in March rose 0.4 pct month-on-month, but fell 0.3 pct from the previous year
In March, prices of desktop PCs fell 28.6 pct from a year before and prices of notebook PCs dropped 27.6 pct, while prices of regular gasoline rose 10.7 pct and prices of premium gasoline increased by 9.8 pct
The ministry also released national CPI data for February
The core rate fell 0.1 pct from the previous month. Year-on-year the core rate fell 0.4 pct
The index for overall prices nationally in February fell 0.2 pct month-on-month. Year-on-year it fell 0.3 pct
In February, prices of desktop PCs nationally plunged 30.7 pct from a year before and prices of notebook PCs fell 29.0 pct, while prices of regular gasoline rose 11.6 pct and prices of premium gasoline gained by 10.1 pct |
