10% Trimmed CPI Japan

In June 2017, the 10% Trimmed CPI inflation was 0.27% YoY in Japan, a marginal increase from 0.26% YoY in May 2017.

Published monthly by Japan Macro Advisors. Updated to the month of June/July 2017 (published on July 28th, 2017)

Recent data trend

The results from the latest 10% trimmed CPI inflation indicate that the trend inflation in Japan rose above zero. The year on year (YoY) inflation in the nationwide trimmed CPI for June 2017 was 0.27%. The trimmed CPI inflation measure has been fluctuating around the zero line since mid-2016. While the economic activities have become somewhat buoyant, the trend inflation in Japan seems to be hovering around zero.

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 has 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:  August 25th, 2017.

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