japan inflation slows again in december as spending drops
Last Updated : GMT 00:50:59
Arab Today, arab today
Arab Today, arab today

Japan inflation slows again in December as spending drops

Arab Today, arab today

Arab Today, arab today Japan inflation slows again in December as spending drops

Commuters cross a street during heavy snow fall
Tokyo - AFP

Japanese inflation slowed again in December, official data showed on Friday, as weak consumer spending and falling energy prices challenge Tokyo's war on deflation, hiking pressure on the Bank of Japan to unleash more stimulus.
But an uptick in factory output suggests that the world's number-three economy may be crawling out of recession, analysts said, as the unemployment rate hit a 17-year low.
The mixed bag of economic data published Friday morning showed core consumer inflation slowed for a fifth straight month, while the internal affairs ministry reported that spending among Japanese households fell a greater-than-expected 3.4 percent from a year ago, as a sales tax hike weighed on shopping nationwide.
Inflation is a key measure for Tokyo's bid to end years of stagnant or falling prices that have been blamed for holding back growth and denting firms' expansion plans.
Prices were on the rise, largely due to Japan's heavy post-Fukushima energy bills, but oil rates have tumbled in recent months and consumers snapped their wallets shut after the government raised sales taxes to 8.0 percent from 5.0 percent last year.
The economy quickly fell into recession, prompting Prime Minister Shinzo Abe to put off a second sales tax hike this year, which was aimed at taming Japan's enormous national debt.
The figures on Friday showed the inflation rate last month was at 2.5 percent, down from 2.7 percent in November. Adjusted for the tax hike, the rate rose just 0.5 percent from a year earlier, well short of the Bank of Japan's 2.0 percent inflation goal which it hopes to reach around the fiscal year ending in April next year.
Earlier this month the central bank slashed its inflation outlook as plunging oil prices make the target look increasingly out of reach. The move boosted speculation that the BoJ would have to further expand its already huge monetary easing programme to counter the downturn.
"Inflation is still likely to moderate further," Marcel Thieliant from Capital Economics said in a commentary.
"Less than half of the plunge in the price of crude oil has been passed on to consumers in the form of lower gasoline prices so far."
- Tight labour market -
Japan's central bank now expects inflation for the fiscal year starting in April to come in at 1.0 percent, well down from an earlier 1.7 percent forecast and the BoJ's own ambitious target.
"The BoJ is expected to go ahead with additional easing in April at the latest," SMBC Nikko Securities said.
"Prices are likely to return to deflation by early spring and it is highly possible that the bank will fail to achieve the fiscal 2015 (inflation) outlook.
"If the BoJ leaves that unaddressed, it will be called into question how serious it is about raising prices."
Taking office in late 2012, premier Abe launched a growth blitz dubbed Abenomics, which meshes government spending with massive monetary easing by the central bank and reforms to the highly regulated economy.
The plan bore fruit in the beginning, but the more recent slowdown has raised the stakes as the conservative leader struggles to contain Japan's finances -- the country has one of the world's biggest debt burdens -- while dragging the economy out of a years-long slump.
Last month, revised figures showed that Japan's economy shrank 0.5 percent in the July-September quarter, marking the second consecutive contraction.
Fourth-quarter GDP figures are due on February 16.
In some more upbeat news on Friday, industrial production in December rose 1.0 percent on-month, slightly below market expectations, but reversing a surprise drop in November.
The jobless rate edged down to 3.4 percent from 3.5 percent a month earlier, hitting its lowest level since mid-1997.
"The rebound in industrial production in December confirms that the economy started to recover last quarter," said Thieliant from Capital Economics.
"The labour market (also) continues to tighten... However, there is no evidence that a tighter labour market has strengthened price pressure."

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

japan inflation slows again in december as spending drops japan inflation slows again in december as spending drops

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

japan inflation slows again in december as spending drops japan inflation slows again in december as spending drops

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Banyan Tree Phuket Takes Festive Season

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Top Democrat faces investigation

GMT 09:50 2017 Friday ,17 November

Top Democrat faces investigation
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Angola oil boss sacked by father's protege

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Urban, young and active?

GMT 11:01 2017 Thursday ,16 November

Urban, young and active?
Arab Today, arab today Ayten Amer happy for “The Flood” success

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success
Arab Today, arab today Unloved vultures fight for their survival

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 08:21 2017 Tuesday ,14 November

Nelly Karim focuses on humanitarian roles

GMT 09:23 2017 Wednesday ,15 November

Years melt away as Bening & Bell play unlikely lovers

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 13:40 2017 Monday ,13 November

Pollution spikes in Delhi amid warnings

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 10:55 2017 Thursday ,16 November

UN warns fuel running out

GMT 01:04 2017 Wednesday ,15 November

In Morocco, a blue tourist town

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday