— Japan Jan Core CPI -0.1% Y/Y Vs MNI Median Forecast -0.2%
— Japan Jan CPI Posts 4th Straight Y/Y Drop; Dec -0.1%
— Central Tokyo Feb CPI -0.3% Y/Y Vs Jan -0.4%
— Japan Jan CPI Energy Costs +5.7% Y/Y Vs Nov +6.9%

TOKYO (MNI) – Japan’s core consumer prices fell 0.1% on year in
January, posting the fourth straight drop, as global demand slows and
the strong yen keeps import costs down, data released Friday by the
Ministry of Internal Affairs and Communications showed.

The core reading, which excludes perishables but includes energy,
followed a 0.1% drop in December and came in slightly better than the
median economist forecast for -0.2% in a Market News International
survey.

In July 2011, the core CPI posted the first year-on-year gain since
December 2008, but after two more months of rises, the key inflation
measure slipped back into negative territory.

Total national CPI rose 0.1% on year in January after falling 0.2%
in December, marking the first rise in five months, thanks to higher
costs of electricity, fresh vegetables and gasoline.

But at the core level, markdowns in TVs and refrigerators continued
to outpace gains in retail gasoline prices.

Overall energy costs in January rose 5.7% from a year earlier, with
the pace of growth decelerating from 6.9% in December and 6.7% in
November.

National CPI excluding food and energy, or the U.S.-style core CPI,
dropped 0.9% in January following a 1.1% decline in December.

Meanwhile, central Tokyo core CPI fell 0.3% in February following a
0.4% drop in January and compared with the median forecast for a 0.4%
fall in a Market News International survey.

CPI figures date to 1970 under the 2010 base year.

Despite years of deflation, the latest government consumer
confidence survey released last month indicated a slight increase in
inflation expectations.

The percentage of people forecasting higher prices in a year’s time
rose to 63.1% of the total on an unadjusted basis in January from 61.3%
in the previous month, according to the survey compiled by the Cabinet
Office.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4835 **

[TOPICS: M$J$$$,M$A$$$,MAJDS$,MT$$$$]