Japanese consumer price inflation falls back in January

Inflation in Japan fell back at the start of the year; although a leading indicator of nationwide price pressures did so by less than was expected.

The most widely-followed measure of core consumer price inflation in Japan, which only excludes the prices of fresh food, was unchanged in year-over-year terms in January, according to the country´s Internal Affairs Ministry, after a gain of 0.1% in the month before.

That was as expected by economists.

Energy costs were the main culprit behind the falls, dropping by 10.7%, while wholesale prices declined 3.1%.

Prices for services gained just 0.2% in January.

However, core consumer prices in Tokyo, considered a lead indicator for the rest of the country, slipped by 0.1% year-on-year, the same as in the month before and marking a second consecutive monthly fall.

The Bank of Japan´s own core measure, which excludes both fresh food and energy costs costs, slowed from 1.3% pace in December to a 1.1% clip in January, well beneath the monetary authority´s 2.0% target, as imported inflation declined.