28 Apr 2016
Japan: Inflation figures in opposite direction of BoJ's hopes
Japanese inflation figures for the months of March (Tokyo) and April (nationwide) worsened further, with weaker domestic consumption, still relatively low energy prices and a tame recovery in global economies, the main drivers behind the lack of progress by BOJ, to so far fail to gather any momentum in inflation.
The data adds to the case for further easing in Japan in order to maintain hopes of reaching a 2% inflation target. One of the underlying reasons weighing on CPI readings not picking up is the continuous declines in overall household spending, which printed a very poor -5.3% change in March yoy vs -4.2 exp and 1.2% last.
Today's national CPI for March came at -0.1% y/y vs expected 0.0% and prior +0.3%, core inflation (excluding Fresh Food) stood at -0.3% y/y v expected -0.2% and prior 0%, while CPI excluding Food, Energy came at 0.7% y/y vs expected 0.8% and prior 0.8%.
In Tokyo, CPI for February came at xxx% y/y vs expected -0.2% and -0.1% last, with Tokyo CPI excluding Fresh Food at -0.3% y/y vs expected -0.3% and prior -0.3%, while Tokyo CPI excluding Food, Energy was 0.6% y/y vs expected 0.5% and prior 0.6%.
The data adds to the case for further easing in Japan in order to maintain hopes of reaching a 2% inflation target. One of the underlying reasons weighing on CPI readings not picking up is the continuous declines in overall household spending, which printed a very poor -5.3% change in March yoy vs -4.2 exp and 1.2% last.
Today's national CPI for March came at -0.1% y/y vs expected 0.0% and prior +0.3%, core inflation (excluding Fresh Food) stood at -0.3% y/y v expected -0.2% and prior 0%, while CPI excluding Food, Energy came at 0.7% y/y vs expected 0.8% and prior 0.8%.
In Tokyo, CPI for February came at xxx% y/y vs expected -0.2% and -0.1% last, with Tokyo CPI excluding Fresh Food at -0.3% y/y vs expected -0.3% and prior -0.3%, while Tokyo CPI excluding Food, Energy was 0.6% y/y vs expected 0.5% and prior 0.6%.