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26 Apr 2016
Japanese CPI remains weak - Nomura
Analysts at Nomura explained that in their view inflation remains weak in Japan.
Key Quotes:
"Although the Tokyo core core CPI was higher than forecast, in our view inflation remains weak.
In particular, we think prices for consumer durables are starting to reflect slowing yen depreciation, as is inflation for the core food component.
We do not expect the negative impact of energy prices on inflation to disappear any time soon.
We also think it probable that the boost to inflation from yen depreciation will continue waning.
We expect the all-Japan core CPI to follow a moderate downtrend on a y-y basis in 2016."
Key Quotes:
"Although the Tokyo core core CPI was higher than forecast, in our view inflation remains weak.
In particular, we think prices for consumer durables are starting to reflect slowing yen depreciation, as is inflation for the core food component.
We do not expect the negative impact of energy prices on inflation to disappear any time soon.
We also think it probable that the boost to inflation from yen depreciation will continue waning.
We expect the all-Japan core CPI to follow a moderate downtrend on a y-y basis in 2016."