Japan's core inflation hits 4-year low, rebound eyed on energy shock
A 10.6% drop in education fees and weaker energy costs helped slow price gains, while the Bank of Japan still sees upside risks.
- Japan's core CPI eased to 1.4% in April, missing the 1.7% forecast and marking the slowest pace in four years, weakening the near-term case for a Bank of Japan rate hike.
- Slower processed-food price gains and a sharp drop in education fees restrained the reading, while government cost-of-living support programs contributed to the disinflationary trend.
- Despite soft inflation, Japan's economy expanded 2.1% annualized in the first quarter, better than expected and potentially keeping a BOJ rate hike on the horizon, according to DBS analysts.
- Opposition lawmakers proposed a 3 trillion yen package extending petrol subsidies and providing electricity bill relief, while Prime Minister Sanae Takaichi signaled openness to a supplementary budget.
- Japan reportedly spent 10 trillion yen intervening in the currency market to support the weak yen, aiming to mitigate rising import costs that have eroded consumers' purchasing power.
14 Articles
14 Articles
Japan's core inflation hits 4-year low, rebound eyed on energy shock
Japan's annual core inflation slowed to a four-year low in April due to the effect of subsidies on fuel and education, data showed on Friday, though analysts expect surging fuel costs from the Middle East war to accelerate price growth in coming months.
Japan inflation eases to 4-year low, complicating BOJ hike
Japan’s core consumer price index, which excludes fresh food, rose 1.4% in April from a year earlier, the Ministry of Internal Affairs and Communications said Friday. That was lower than all estimates in a Bloomberg survey of economists.
Stock exchanges rise after data are published in Europe and Japan's CPI: oil continues to rise. Photo: taken from Freepik Asia-Pacific Stock Exchanges Nikkei rose 2.70 %, followed by Hang Seng (0.80 %), Kospi (0.41 %) and Nifty 50 (0.27 %). Japan's consumer price index (CPI) inflation moderated in April, with underlying inflation falling further below the Bank of Japan's annual target, amid continued government measures to limit local price incr…
Japan Core Inflation Hits 4-Year Low Amid Energy Shock
Japan’s core inflation has fallen to its lowest level in four years, raising fresh concerns about the resilience of the country’s economic recovery. According to the latest government data released on [date], price gains excluding fresh food slowed significantly, driven by easing consumer demand and weakening energy costs. However, analysts are closely monitoring the impact of recent energy shocks, which could trigger a rebound in inflation in t…
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