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Japan’s core consumer prices were seen struggling for two consecutive months in May. This increased deflation expectations and prompted policymakers to provide more economic reinforcements for the virus-beaten economy.
The country’s core consumer price index (CPI) dropped a total of 0.2% in May from a year earlier, government data showed on Friday. This followed after the index recorded a 0.2% decline in April, its first year-on-year drop since December 2016. In addition to this, it placed higher than the initial prediction of a 0.1% contraction.
The weak figure will likely complicate the Bank of Japan’s effort of maintaining growth and inflation. More so, recent signals suggested that the world’s third-largest economy is suffering from its sharpest postwar slump.
Several BOJ officials emphasized the need for larger monetary supports and tighter policy coordination with the government to prevent the country from sliding to deflation, minutes of the bank’s April meeting showed.
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June had seen Japan’s industrial output breaking its four-month slump. The recuperation could be attributed to a modest recovery seen in broader business and consumer activity after the world’s third-biggest economy suffered from ...
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KYC Policy