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25 May 2015
Japan core inflation to have bottomed – DB
FXStreet (Barcelona) - Kentaro Koyama, Economist at Deutsche Bank, previews the Japanese CPI data release ahead in the week.
Key Quotes
“We expect the core CPI (excluding fresh food) to rise 0.3% YoY. The impact of last year’s consumption tax hike has virtually disappeared since this April when measuring by YoY change, but we should still see lingering effects on YoY inflation from the tax hikes in electricity and gas charges to which the tax hike was applied with a month lag. We estimate that this will lift core inflation by 0.3ppt. Excluding this factor, core inflation would come to 0.0% YoY, below the March result. Still, we believe that core inflation bottomed in February and will begin to trend gently upward from mid year.”
Key Quotes
“We expect the core CPI (excluding fresh food) to rise 0.3% YoY. The impact of last year’s consumption tax hike has virtually disappeared since this April when measuring by YoY change, but we should still see lingering effects on YoY inflation from the tax hikes in electricity and gas charges to which the tax hike was applied with a month lag. We estimate that this will lift core inflation by 0.3ppt. Excluding this factor, core inflation would come to 0.0% YoY, below the March result. Still, we believe that core inflation bottomed in February and will begin to trend gently upward from mid year.”