Inflation in Japan
Japan - Inflation
Core inflation inches up in May
In May, the core consumer price index was flat from the previous month in seasonally-adjusted terms, matching the result in the previous three months. May’s reading mainly reflected that higher prices for fuel, light and water charges were offset by lower prices for food and furniture and household utensils.
Core inflation rose from April’s 0.3% to 0.4% in May. The print was in line with what market analysts had expected and represented the highest rate since April 2015. Overall inflation came in at 0.4% in May, matching April’s result.
Core prices for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—were flat on an annual basis, down from May’s 0.1% rise.
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 0.8% and 1.9%. FocusEconomics Consensus Forecast panelists expect inflation of 0.6% in calendar year 2017, which is unchanged from last month’s estimate. In 2018, the panel sees inflation at 0.8%.
Japan - Inflation Data
|Inflation Rate (CPI, annual variation in %)||-0.3||-0.1||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||0.08||14.29 %||Jul 26|
|Exchange Rate||111.2||-0.64 %||Jul 26|
|Stock Market||20,050||0.48 %||Jul 26|
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July 24, 2017
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) fell from June’s revised 52.4 (previously reported: 53.1) to 52.2 in July.
July 20, 2017
Nominal exports valued in yen increased 9.7% from the same month last year in June, following May’s 14.9% increase.
July 20, 2017
The Bank of Japan (BoJ) left its monetary policy stance at its 19–20 July meeting, voting to continue with its program of Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control as long as is necessary to achieve and maintain its 2.0% inflation target.
July 10, 2017
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) declined for the second consecutive month in May, casting doubts about the strength of firms’ capital spending.
July 3, 2017
Consumer sentiment declined from 43.6 in May to 43.3 in June.