Overall nationwide consumer prices in Japan gained 0.2 percent on year in August, the Ministry of Internal Affairs and Communications said on Friday – unchanged from the July reading and exceeded forecasts for an increase of0.1 percent

Core inflation, which excludes the volatile costs of food, was down 0.1 percent on year in August – matching expectations following the flat reading in the previous month.

Among the individual components, food prices climbed 2.7 percent on year, followed by clothing (1.7 percent), furniture and recreation (both 1.6 percent), education (1.4 percent) and medical care (0.8 percent).

Fuel prices tumbled an annual 5.9 percent and communication prices fell 2.7 percent.

On a monthly basis, overall CPI was up 0.2 percent and core inflation was unchanged.

Individually, prices for recreation were up 1.8 percent on month, followed by food (0.8 percent).

Prices for housing and education were flat, while clothing and fuel prices were down 1.4 percent.

Overall inflation for the Tokyo region, considered a leading indicator for the nationwide trend, was down 0.1 percent on year in September.

That matched expectations following the0.1 percent increase in August.

Core CPI was down 0.2 percent on year in Tokyo – also in line with forecasts following the 0.1 percent decline in the previous month.

Among the individual components, prices for fuel plunged 9.4 percent on year, while communication prices fell 1.1 percent and housing dipped 0.4 percent.

Recreation costs added 2.1 percent, followed by furniture (1.4 percent), food (1.3 percent) and education (0.7 percent).

On a monthly basis, overall inflation was flat in Tokyo, while core CPI eased 0.1 percent.

Individually, prices for fuel dropped 2.4 percent on month, while communication costs fell 1.4 percent and recreation lost 1.1 percent.

Clothing costs surged 6.7 percent, followed by food (0.7 percent). Education and medical care was flat.

Also on Friday, the Bank of Japan said that producer prices were up 0.7 percent on year in August – exceeding expectations for an increase of 0.5 percent following the 0.6 percent gain in July.

On a monthly basis, prices fell 0.2 percent after gaining 0.2 percent in the previous month.

Among the individual components, prices for leasing, advertising and employment services were up, while communications and real estate prices were down.

The material has been provided by InstaForex Company – www.instaforex.com