September 2023 Consumer Price Index
Going forward, pace of growth in prices will gradually slow down
October 20, 2023
Summary
◆Japan’s September 2023 core CPI (excluding fresh food) recorded +2.8% y/y. New core-core CPI (excluding fresh food and energy) was at +4.2%. Both show a reduction in growth rate in comparison to the previous month.
◆Looking at the y/y change in core CPI in terms of goods and services, the positive range shrank for durable consumer goods, semi-durable goods, and non-durable goods (excluding fresh food and energy). The negative range in energy prices widened. Meanwhile, services marked time in comparison to the previous month. There are signs of peaking out centering on goods.
◆The growth trend in new core-core CPI is expected to continue in the future. With the high rate of growth in wages achieved in the 2023 spring labor negotiations, the service prices, which are closely linked to the wage growth rate, are showing an upward trend as the underlying tone. Companies are now becoming more aggressive in their pricing behavior, and there is a possibility that they will further accelerate their efforts to pass on the increased input costs resulting from higher wages to selling prices.
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