Inflation in Japan
Japan - Inflation (end of period)
Core inflation returns to Japan in January
In January, the core consumer price index decreased 0.2% compared to the previous month, coming in below December’s flat reading. The print mainly reflected lower prices for clothing and footwear, as well as recreational goods and services.
Core inflation hit 0.1% in January from the same month a year earlier, which followed December’s 0.2% drop and was the first positive reading in nearly two years. The upswing came in ahead of market analysts’ expectations of a flat reading. Overall inflation came in at 0.4% in January, above December’s 0.3%.
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 February from the same month last year (January: -0.3% 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 0.7% in calendar year 2017, which is up 0.1 percentage points 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)||-0.2||-0.1||1.6||2.4||0.2|
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||-3.45 %||Mar 23|
|Exchange Rate||111.0||-0.19 %||Mar 23|
|Stock Market||19,085||0.23 %||Mar 23|
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March 24, 2017
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) fell from February’s revised 53.3 (previously reported: 53.5) to 52.6 in March.
March 22, 2017
Japanese nominal exports valued in yen increased 11.3% from the same month last year in February, following January’s 1.3% increase.
March 16, 2017
The Bank of Japan (BoJ) maintained its monetary policy stance at its 15–16 March meeting, voting to continue with its Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control program as long as is necessary to achieve and maintain its 2.0% inflation target.
March 13, 2017
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) fell in January, casting doubts about the sustainability of the Japanese recovery.
March 8, 2017
The Japanese economy grew at a faster rate than previously reported in Q4 as private consumption managed to grow mildly and investment recorded a healthy expansion, according to revised data released on 8 March.