Japan’s Tokyo CPI core rises in May, industrial production weakens in Apr – A Fresh Update
In a recent report, Japan’s Tokyo CPI core (excluding fresh food) saw a rise in May, increasing from 1.6% yoy to 1.9% yoy, meeting expectations set by experts. This increase was mainly attributed to higher electricity costs. However, the CPI core-core (excluding food and energy) experienced a slight slowdown from 1.8% yoy to 1.7% yoy. Private sector service inflation also decreased from 1.6% yoy to 1.4% yoy. On the other hand, the headline CPI showed an uptick from 1.8% yoy to 2.2% yoy.
Looking at April’s industrial production data, there was a decline of -0.1% mom, which fell short of the expected 1.5% mom rise. The Ministry of Economy, Trade, and Industry’s assessment stated that industrial production “showed weakness while fluctuating indecisively.” Among the 15 industrial sectors surveyed, seven reported lower output, while eight reported increases. Manufacturers are anticipating a rise in output by 6.9% in May, followed by a decrease of -5.6% in June.
Furthermore, April’s retail sales showed a significant increase of 2.4% yoy, surpassing the anticipated 1.9% increase. The unemployment rate remained steady at 2.6%.
As Japan navigates through these economic fluctuations, the data provides valuable insights into the trends and challenges facing the country’s economy. Stay tuned for more updates on Japan’s economic landscape.
