27 Jan 2015
Japan may record the lowest inflation since June 2013 – Nomura
FXStreet (Barcelona) - According to the Research Team at Nomura, Japan’s December core CPI may decelerate to 0.5% yoy, the lowest level since June 2013.
Key Quotes
“We should see another important impact of the oil price decline on Japanese economic data this week, as we expect December core CPI inflation to decelerate to +0.5% y-o-y from +0.7% (consensus: +0.6%).”
“We thus expect December core CPI to record the lowest inflation since June 2013.”
“Even though BOJ Governor Kuroda remains optimistic on the inflation outlook as the BOJ judges inflation expectations remain well anchored, the expected further deceleration in actual inflation should have a negative impact on inflation expectations going forward.”
“As a result, market expectations for BOJ easing will likely continue rising gradually, supporting USD/JPY, even amid the gradual improvement in trade balance.”
Key Quotes
“We should see another important impact of the oil price decline on Japanese economic data this week, as we expect December core CPI inflation to decelerate to +0.5% y-o-y from +0.7% (consensus: +0.6%).”
“We thus expect December core CPI to record the lowest inflation since June 2013.”
“Even though BOJ Governor Kuroda remains optimistic on the inflation outlook as the BOJ judges inflation expectations remain well anchored, the expected further deceleration in actual inflation should have a negative impact on inflation expectations going forward.”
“As a result, market expectations for BOJ easing will likely continue rising gradually, supporting USD/JPY, even amid the gradual improvement in trade balance.”