Inflation in Japan
Japan - Inflation (end of period)
Core inflation inches up to nearly two-year high in February
In February, the Japan's core consumer price index was flat from the previous month, coming in above January’s 0.2% drop. The print mainly reflected that lower prices for food and transportation and communication were offset by higher prices for most of the other categories, particularly clothing and footwear.
Core inflation rose from 0.1% in January to 0.2% in February. The print represented the highest reading since April 2015 and matched market analysts’ expectations. Overall inflation came in at 0.3% in February, below January’s 0.4%.
Core prices for Tokyo—available one month in advance of the national figures and thus a leading indicator for countrywide inflation—fell 0.4% in March from the same month last year (February: -0.3% year-on-year).
Although inflationary pressures are gradually resurfacing on the back of a weak yen and higher energy prices, in its March monetary policy notes, the Bank of Japan acknowledged that, “inflation expectations have remained in a weakening phase.” Therefore, the current monetary policy stance is expected to remain in place for the foreseeable future.
The Bank of Japan (BoJ) expects that core inflation will be between 0.8% 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 0.7% in calendar year 2017, which is unchanged from last month’s estimate. In 2018, the panel sees inflation at 0.9%.
Japan - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||-1.7||-0.3||-0.2||-0.2||1.7|
5 years of economic forecasts for more than 30 economic indicators.
Japan Inflation (eop) Chart
Source: Statistics Bureau of Japan and FocusEconomics calculations.
|Bond Yield||0.06||-3.08 %||Apr 06|
|Exchange Rate||110.8||0.10 %||Apr 06|
|Stock Market||18,597||-1.40 %||Apr 06|
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April 21, 2017
Nominal exports in Japan valued in yen increased 12.0% from the same month last year in March, following February’s 11.3% increase.
April 21, 2017
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from March’s revised 52.4 (previously reported: 52.6) to 52.8 in April.
April 6, 2017
Consumer sentiment rose from 43.2 in February to 43.9 in March, hitting the highest level since September 2013.
April 3, 2017
According to the Bank of Japan’s quarterly Tankan business survey, sentiment among large manufacturers jumped to the highest level in over a year on the back of a weakening yen and rising global demand.
March 31, 2017
Industrial production in Japan rose 2.0% in February compared to the previous month in seasonally-adjusted terms, contrasting January’s 0.4% decrease.