Tokyo inflation fails to accelerate in May
2022-06-07 02:53:10
#acceleration#economy#expansionInflation growth in Japan's Tokyo area was unchanged from the previous month, the latest data showed, underscoring the country's weaker price hikes than the rest of the world and providing some support for the Bank of Japan's stimulus policy stance.
The core Tokyo CPI, seen as a leading indicator of Japan's price trends, rose 1.9 percent in May from a year earlier, unchanged from the previous month, as the impact of an accelerated rise in processed food prices was offset by a small rise in energy prices, according to data released by Japan's internal affairs ministry on Friday. , economists expected a 2% increase.
This data once again shows that the inflation situation in Japan is different from that in the United States and Europe. Currently, both the Federal Reserve and the European Central Bank are taking measures to control inflation. The lack of an acceleration in prices also suggests that nationwide inflation trends will also struggle to get an additional boost in May, a result that supports the Bank of Japan's view that Japan is not on the verge of an inflationary spiral.
Toru Suehiro, senior economist at Daiwa Securities, said: "Today's data serves as a reminder of the softness in Japan's inflation picture and may dampen speculation about the Bank of Japan's policy adjustment. For the Bank of Japan, today's data supports their continued The stance of easing monetary policy."
The Bank of Japan has said that it needs to continue to maintain extremely low interest rates to support the economy, and no longer pay attention to short-term inflation driven by costs, Japan hopes to achieve "sustainable and acceptable" inflation. However, a sharp acceleration in price increases in April complicates the statement. Far from being satisfied, Governor Haruhiko Kuroda insisted on his stance that inflation caused by rising energy prices was unsustainable when national prices rose above the country's central bank's 2 percent target in April.
The core Tokyo CPI, seen as a leading indicator of Japan's price trends, rose 1.9 percent in May from a year earlier, unchanged from the previous month, as the impact of an accelerated rise in processed food prices was offset by a small rise in energy prices, according to data released by Japan's internal affairs ministry on Friday. , economists expected a 2% increase.
This data once again shows that the inflation situation in Japan is different from that in the United States and Europe. Currently, both the Federal Reserve and the European Central Bank are taking measures to control inflation. The lack of an acceleration in prices also suggests that nationwide inflation trends will also struggle to get an additional boost in May, a result that supports the Bank of Japan's view that Japan is not on the verge of an inflationary spiral.
Toru Suehiro, senior economist at Daiwa Securities, said: "Today's data serves as a reminder of the softness in Japan's inflation picture and may dampen speculation about the Bank of Japan's policy adjustment. For the Bank of Japan, today's data supports their continued The stance of easing monetary policy."
The Bank of Japan has said that it needs to continue to maintain extremely low interest rates to support the economy, and no longer pay attention to short-term inflation driven by costs, Japan hopes to achieve "sustainable and acceptable" inflation. However, a sharp acceleration in price increases in April complicates the statement. Far from being satisfied, Governor Haruhiko Kuroda insisted on his stance that inflation caused by rising energy prices was unsustainable when national prices rose above the country's central bank's 2 percent target in April.
