A revision of Japan’s inflation data showed prices fell a little less than first thought in June, although the nation remains far from its 2 percent inflation target.
Japan’s consumer prices excluding fresh food dropped 0.4 percent in June, compared with an earlier report of a 0.5 percent decline, according to data released Friday by the statistics bureau in Tokyo. The bureau changed the base year for the price data to 2015 from 2010 and released revised figures.
"There is no change to the fact that the Bank of Japan will have to continue with its massive easing as the inflation target remains out of sight,’’ said Taro Saito, director of economic research at NLI Research Institute, before the report was released.
The bureau will release price data for July on Aug. 26 which reflects the base-year change. The BOJ’s next meeting is Sept. 20-21.
In the previous revision in August 2011, the BOJ’s key inflation measure was revised sharply. Core CPI for June 2011 was changed to a decline of 0.2 percent from 0.4 percent.
Revisions in 2006 showed that overall consumer prices had actually been falling when the central bank ended quantitative easing and raised the interest rate, cooling speculation for another rate hike that year. The episode is known in Japan as “the CPI shock.”