26 May 2015
Japanese inflation to fall again from April – BNPP
FXStreet (Barcelona) - The Research Team at BNP Paribas believes that recent spike in Japanese inflation was temporary and April CPI release will likely show a dip.
Key Quotes
“Japan’s core CPI inflation rate inched up 0.2pp from February to 2.2% y/y in March, ending a slowdown that had lasted seven months. The main reason for the improvement was a slower rate of decline in energy prices, as a rebound in gasoline prices reduced the negative margin on this item from ‒2.1% in February to just ‒1.0% in March.”
“Excluding the effects of last April’s VAT hike, core CPI inflation edged up 0.2pp to 0.2%, also the first increase in eight months.”
“That said, we believe the upturn in inflation is temporary and that inflation should start to fall again from April.”
“Our forecast, based on Tokyo CPI inflation data for April, puts Japanese core CPI inflation at 0.2% y/y in April.”
Key Quotes
“Japan’s core CPI inflation rate inched up 0.2pp from February to 2.2% y/y in March, ending a slowdown that had lasted seven months. The main reason for the improvement was a slower rate of decline in energy prices, as a rebound in gasoline prices reduced the negative margin on this item from ‒2.1% in February to just ‒1.0% in March.”
“Excluding the effects of last April’s VAT hike, core CPI inflation edged up 0.2pp to 0.2%, also the first increase in eight months.”
“That said, we believe the upturn in inflation is temporary and that inflation should start to fall again from April.”
“Our forecast, based on Tokyo CPI inflation data for April, puts Japanese core CPI inflation at 0.2% y/y in April.”