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27 Feb 2015
Japan inflation weighted down by falling oil prices – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team reviews the Japanese data release and notes that despite soft data Kuroda reiterated that the economy is on a “moderate recovery trend”.
Key Quotes
“Raft of fresh data out of Japan continues to signal that all of policymakers' cheerleading of the economy has yielded little progress.”
“Jobless rate rose to a 4-month high after falling to 17-year lows last month despite reports of tightening labor markets going into the spring wage talks. Household spending was also down again, falling for the 10th straight month, while the drop in retail sales was wider than expected.”
“CPI figures, the most closely monitored metric for its potential implication on BOJ policy, were similarly unimpressive. Nationwide, core CPI hit a 10-month low of 2.2%, and stripping away the tax increase impact core CPI fell to just 0.2% from 0.5% in December.”
“Subsequent commentary from BOJ Gov Kuroda once again showed the central bank is taking the latest developments in stride - reiterating economy is on "moderate recovery trend", exports are picking up, and the BOJ will only monitor to the impact of oil prices on inflation rather than responding with more policy measures.”
“Kuroda added there is no single measurement that accurately captures price trends, and that over the long term the impact of lower oil will be positive for economy.”
“Despite the troubling data, USD/JPY was little moved in Asian trade, contained to a 20pip range below 119.40.”
Key Quotes
“Raft of fresh data out of Japan continues to signal that all of policymakers' cheerleading of the economy has yielded little progress.”
“Jobless rate rose to a 4-month high after falling to 17-year lows last month despite reports of tightening labor markets going into the spring wage talks. Household spending was also down again, falling for the 10th straight month, while the drop in retail sales was wider than expected.”
“CPI figures, the most closely monitored metric for its potential implication on BOJ policy, were similarly unimpressive. Nationwide, core CPI hit a 10-month low of 2.2%, and stripping away the tax increase impact core CPI fell to just 0.2% from 0.5% in December.”
“Subsequent commentary from BOJ Gov Kuroda once again showed the central bank is taking the latest developments in stride - reiterating economy is on "moderate recovery trend", exports are picking up, and the BOJ will only monitor to the impact of oil prices on inflation rather than responding with more policy measures.”
“Kuroda added there is no single measurement that accurately captures price trends, and that over the long term the impact of lower oil will be positive for economy.”
“Despite the troubling data, USD/JPY was little moved in Asian trade, contained to a 20pip range below 119.40.”