Inflation in Japan
Japan - Inflation
Decline in core prices softens in December
In December, the core consumer price index decreased 0.2% compared to the previous month, which followed November’s flat reading. The print mainly reflected lower prices for food, clothing and footwear.
Core prices were down 0.2% from the same month of 2015 in December, which followed November’s 0.4% drop and was a smaller drop than the 0.3% expected by market analysts. Overall inflation came in at 0.3% in December, below November’s 0.5%.
Core prices for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—fell 0.3% in January from the same month last year (December: -0.6% year-on-year).
The Bank of Japan (BoJ) expects that core inflation will be between 0.6% and 1.6% in the fiscal year ending March 2018. In the following fiscal year, the BoJ sees inflation between 0.9% and 1.9%. FocusEconomics Consensus Forecast panelists expect inflation of 0.5% in calendar year 2017, which is unchanged from last month’s estimate. In 2018, the panel sees inflation at 0.9%.
Japan - Inflation Data
|Inflation Rate (CPI, annual variation in %)||-0.3||0.0||0.4||2.8||0.8|
5 years of economic forecasts for more than 30 economic indicators.
Japan Inflation Chart
Source: Statistics Bureau of Japan and FocusEconomics calculations.
|Bond Yield||0.10||4.40 %||Feb 16|
|Exchange Rate||113.2||-0.81 %||Feb 16|
|Stock Market||19,348||-0.47 %||Feb 16|
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February 13, 2017
Although the economy managed to expand for the fourth consecutive quarter in Q4, growth softened in the October-December period as a result of stagnating private demand.
February 9, 2017
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) rebounded in December and expanded at the fastest pace since June 2016.
February 2, 2017
Consumer sentiment in Japan rose marginally from December’s 43.1 to 43.2 in January, which marked the highest reading since September 2013.
January 31, 2017
Industrial production expanded 0.5% in December compared to the previous month in seasonally-adjusted terms, below November’s 1.5% reading.
January 31, 2017
The Bank of Japan (BoJ) maintained its monetary policy at its 30–31 January meeting, voting to continue with its Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control program as long as is necessary to achieve its 2.0% inflation target.