Breaking News
Get 40% Off 0
🔎 See NVDA full ProTips for an instant risks or rewards Claim 40% OFF

Japan's inflation eases, supporting BOJ's steady policy stance

Published Dec 05, 2023 17:54
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Tokyo has recorded its lowest inflation growth since the previous year in November, with a rate of just 2.3%, the Ministry of Internal Affairs reported today. This slowdown aligns with the Bank of Japan's (BOJ) expectations of diminishing price pressures and lends credence to their decision to maintain current economic stimulus measures.

The capital's more moderate cost increases were influenced by lower prices for utilities and processed foods, contributing to an inflation rate that fell short of projections. Core inflation figures, which exclude volatile food and energy prices, also reflected a deceleration, rising only 3.6% and showing a trend of gradual easing over recent months.

These developments support BOJ Governor Kazuo Ueda's view that inflationary pressures are likely to continue receding, potentially delaying any imminent changes in monetary policy. The focus remains on wage growth as a key factor in the central bank's long-term inflation strategy.

The BOJ has maintained a cautious stance despite inflation outstripping its target for the 19th consecutive month as of November 24. The central bank attributes the persistent rise to transitional and cost-push factors rather than sustainable demand-driven pressures. Consequently, the BOJ is deferring any policy adjustments until after spring wage data becomes available.

In addition, three BOJ members have recently set expectations in media statements, indicating that there will not be a swift shift in policy ahead of upcoming wage negotiations. Despite raising its near-term inflation forecast slightly to an average of 2.8%, the BOJ anticipates a decline to around 1.7% by fiscal year 2025, suggesting an eventual return to below-target levels after an extended period above the target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Japan's inflation eases, supporting BOJ's steady policy stance
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email