Japan: Core CPI for August to rise to 0.7% - Nomura

Analysts at Nomura expect the all-Japan core CPI for August to rise to 0.7% y-o-y from 0.5% in July.

Key Quotes

“In addition to the positive contribution from energy prices, we expect a rise in medical fees caused by system changes to boost the core component. We also expect the August all-Japan core CPI (which excludes energy and food, except alcoholic beverages) to rise to 0.1% y-o-y from -0.1% in July. August core CPI inflation for the Tokyo area (already released) rose sharply from July, and we believe the all-Japan figure will follow this pattern. We also forecast a 0.3% y-o-y August rise in the all-Japan CPI excluding fresh food and energy, commonly known as the BOJ's version of the core CPI, up from 0.1% in July.” 

“For the September Tokyo area core CPI, we forecast a rise of 0.5% y-o-y, up from 0.4% in August. We expect the rebound in energy prices to continue to boost the core CPI. Also, we forecast a core CPI for September of 0.0% y-o-y, the same as in August. We also expect the Tokyo area CPI inflation excluding fresh food and energy (the BOJ's version of the core CPI) for September to come in at 0.0%, the same as in August.”