Inflation in Japan Nov likely to pick up, exports on weaker yen: Reuters poll

TOKYO (Reuters) – Japan's consumer price inflation likely picked up in November, driven by steady rice prices and the end of utility subsidies, a Reuters poll said on Friday.

The core consumer price index (CPI), which includes oil products but excludes fresh food prices, was expected to increase 2.6% in November from a year ago, compared with 2.3% in October, a survey of 18 economists showed.

“On top of the high prices of rice, food and industrial products, the prices of electricity are also increased as the government adjusts the financing of electricity and gas bills of the city,” said a report by Mizuho Research & Technologies.

The Department of Internal Affairs will release CPI data for November on Dec. 20 at 8:30 am (Dec. 19 at 2330 GMT).

The survey also revealed that exports are expected to increase 2.8% in November from a year ago, down from a 3.1% increase in October.

Imports are estimated to have grown by 1% from last year, resulting in a deficit of 688.9 billion yen ($4.50 billion). Imports rose 0.4% in October.

“International trade has always been weak but the yen's weakness since mid-September may have increased the value of exports,” said Takeshi Minami, an economist at the Norinchukin Research Institute.

Machinery orders, a highly volatile but leading indicator of capital spending over the next six to nine months, likely rose 1.2% in October from a month earlier, following a 0.7% drop in September, according to the poll.

The finance ministry will publish trade data at 8:50 am on Dec. 18 (2350 GMT on Dec. 17), while the Cabinet Office will announce machinery orders data at 8:50 a.m. on Dec. 17. 16 (2350 GMT on Dec. 15).

($1 = 152.9800 yen)

(Reporting by Makiko Yamazaki; Editing by Kate Mayberry)