28 Mar 2016
Japan: Inflation remains weak - Nomura
While last week's March Tokyo core core CPI came above consensus, in view of Nomura, inflation in Japan remains weak, concluding that they expect the all-Japan core CPI inflation rate to be slightly negative y-y during 2016.
Key Quotes
"To sum up, although the Tokyo core core CPI was higher than forecast last week, in our view inflation remains weak."
"In particular, we think prices for consumer durables are starting to reflect slowing yen depreciation, as is inflation for the core food component."
"We do not expect the negative impact of energy prices on inflation to disappear any time soon. We also think it probable that the boost to inflation from yen depreciation will continue waning. We expect the all-Japan core CPI inflation rate to be slightly negative y-y during 2016."
Key Quotes
"To sum up, although the Tokyo core core CPI was higher than forecast last week, in our view inflation remains weak."
"In particular, we think prices for consumer durables are starting to reflect slowing yen depreciation, as is inflation for the core food component."
"We do not expect the negative impact of energy prices on inflation to disappear any time soon. We also think it probable that the boost to inflation from yen depreciation will continue waning. We expect the all-Japan core CPI inflation rate to be slightly negative y-y during 2016."