10% Trimmed CPI Japan

In December 2016, the rate of year on year inflation in the 10% Trimmed CPI in Japan rose to 0.01% from -0.09% in November.

Published monthly by Japan Macro Advisors. Updated to the month of December2016/January2017 (published on January 27th, 2017)

Recent data trend

The results from the latest trimmed CPI inflation indicate that the prices in Japan are improving but at a very low rate. The nationwide trimmed CPI for December 2016 was 0.1% YoY, up from -0.09% YoY in November. The trimmed CPI inflation for the Tokyo area also improved from -0.15% YoY in the previous month to -0.05% in January 2017.

Note: Due to some technical error in our calculation, the figure for Tokyo Trimmed CPI for the month of August was shown as 0.15% when we initially published our result. After a correction, the figure have been revised to -0.11% for August. We regret for  any inconveniences caused.

Brief overview of “10% Trimmed CPI”

10% trimmed CPI series aims to track the trend in the CPI inflation by removing its volatile components. All the items in the CPI are ranked by their year-on-year rate of price change and the highest and lowest 10 percentiles by weight are removed, leaving the 80% “core” components of the CPI inflation. Various research suggest that trimmed CPI is the best indicator for the medium term trend in the CPI inflation. Some central banks, such as RBA, are starting to adopt the series as officially monitored series. Japanese government does not officially published the series.

The methodology and references for 10% trimmed CPI

The Next Release Date:  March 3rd, 2017.