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In March the surge of Japan’s key indicator of inflation speeds down to 0.9%
In Japan, consumer prices excluding fresh food, which is the major inflation indicator, closely watched by the country's major financial institution, headed north by approximately 0.9% in April this year having jumped by about 1% in February, which turned to be the maximum for 3.5 years. That’s what the Ministry of Internal Affairs and communications of the country has recently uncovered.
The rise of the indicator generally coincided with market expectations, as Nikkei points out. As a matter of fact, the price increase in March was noted for the 15th consecutive month.
Market experts tell that while it is a matter of temporary easing, rather than a true reversal of inflationary trends in this Asian country, according to Bloomberg. In the coming months, the key inflation indicator is going to be fixed above 1%, although it won’t reach the level targeted by the Bank of Japan (about 2% per annum). That’s what Masamiti Adati, senior economist JPMorgan Chase & Co. in Tokyo informed.
However, the chief economist of Tokai Tokyo Research Center Hiroaki Muto is 100% aassured that the weakness of inflation in the coming months is going to continue due to the deferred influence of the Japanese yen's growth, which the country’s economy will experience in May-June.
In March, consumer prices excluding food and energy tacked on by approximately 0.5% in annual terms, as in February.
The previous month the overall inflation rate in Japan weakened to up to 1.1% compared with March 2017, and also from 1.5% in February.
Earlier, the head of the Bank of Japan Haruhiko Kuroda officially confirmed that the Central Bank is on the verge of sticking with a very soft monetary policy until inflation reaches the key bank’s objective.
All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
All the interesting market movements are here!
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.