— Japan Feb Core CPI -0.3% Y/Y, 24th Drop In Row; Jan -0.2%
— Japan Feb Core CPI MNI Survey Median Forecast: -0.3% Y/Y
— Central Tokyo March Core CPI -0.3% Y/Y, 23rd Drop; Feb -0.4%
— Central Tokyo FY2010 CPI -0.9% Y/Y; FY2009 -1.6%
— Japan CPI Shows Feb Energy Costs +4.0% Y/Y Vs Jan +4.7%

TOKYO (MNI) – Japanese national core consumer price fell slightly
deeper into negative territory in February due to a temporary slowdown
in the pace of energy price markups, but the economy is still set to
move out of years of deflation later this year amid the uptrend in
energy and food costs, data released Friday by the Ministry of Internal
Affairs and Communications showed.

The nationwide core CPI (excluding perishables) fell 0.3% in
February from a year earlier, posting the 24th straight y/y drop, with
the pace of decline accelerated slightly from -0.2% in January.

The January reading was the smallest since April 2009, when the
core CPI dipped 0.1% y/y.

The February core CPI, which excludes fresh food but includes
energy, matched the median forecast of -0.3% by economists polled by
Market News International.

The February decline was led by markdowns in durable goods such as
consumer electronics as well as continued drops in high school tuition
costs after the government began providing subsidies last April.

Total national CPI, meantime, was flat in February from a year
earlier for the third straight month. In October, the index was up 0.2%,
marking the first y/y rise since December 2008.

Overall energy costs in February rose 4.0% following a gain of 4.7%
in January.

Meanwhile, central Tokyo core CPI fell 0.3% year-on-year in March,
the 23rd straight y/y drop. The pace of decline slowed from -0.4% in
February due largely to higher prices of clothing and footwear as well
as increased tobacco prices.

Tokyo-area energy costs rose 2.0% in March following a 1.4% rise
y/y in February.

National CPI excluding food and energy, or the U.S. style core CPI,
fell 0.6% in February from the year before, posting the 26th consecutive
month of price falls following -0.6% in January.

CPI figures date to 1970 under the current 2005 base year.

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

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