Japan’s core inflation may have been 1.8% in August — Reuters poll
Japan’s core inflation in August likely stood at 1.8% year on year, according to economists surveyed by Reuters. This would match the July reading and remain below the Bank of Japan’s 2% target.
Economists’ estimates
Channel NewsAsia, citing Reuters, reported the results of a survey of 16 economists. It concerns the nationwide core consumer price index, which includes energy costs but excludes fresh food prices.
Ryohei Ikeda, an analyst at Mizuho Research Institute, said that higher prices for crude oil and naphtha are increasingly being passed on to consumer prices, particularly for everyday goods. At the same time, government subsidies for electricity and gas bills will curb inflation, he said.
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Price pressure and the Bank of Japan’s decision
Data released on September 11 showed that wholesale prices in Japan rose by 7.6% year on year in August. Additional price pressure on the economy came from rising fuel costs and higher import prices due to the weak yen.
Oil prices were rising on September 11, with both major benchmark grades heading to end the week above $100 per barrel for the first time since mid-May. Analysts surveyed by Reuters also expected the Bank of Japan to raise its interest rate to 1.25% following a two-day meeting scheduled to end the following Friday. Japan’s Ministry of Internal Affairs planned to release consumer price index data on September 18 at 8:30 a.m. local time.
