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28 Jan 2015
Japan core inflation to be depressed by declining oil and food prices – Nomura
FXStreet (Barcelona) - Research Analysts at Nomura predict all December’s all Japan core CPI to come out at 2.1%yoy or 0.4% after stripping off consumption tax hike impact, anticipating the decline in oil food prices to affect Japan’s inflation.
Key Quotes
“Our forecast for December 2014 all-Japan core CPI inflation is +2.5% y-y, or +0.5% after stripping out the impact of the consumption tax hike, down 0.2ppt from November. We look for all-Japan core inflation of +2.1% y-y and +0.4%, respectively, unchanged m-m. In addition to continued declines in energy prices resulting from lower crude oil prices, we expect core inflation to be depressed by declines in food prices, as seen in December Tokyo CPI data.”
“We expect January 2015 Tokyo core CPI inflation of +2.2% y-y and +0.3% excluding the impact of the consumption tax hike, down 0.1ppt from December 2014. We look for Tokyo core core CPI inflation of +1.8% y-y and +0.3%, on par with December data."
"We think energy prices will weight on core inflation again in January owing to weak crude oil prices.”
Key Quotes
“Our forecast for December 2014 all-Japan core CPI inflation is +2.5% y-y, or +0.5% after stripping out the impact of the consumption tax hike, down 0.2ppt from November. We look for all-Japan core inflation of +2.1% y-y and +0.4%, respectively, unchanged m-m. In addition to continued declines in energy prices resulting from lower crude oil prices, we expect core inflation to be depressed by declines in food prices, as seen in December Tokyo CPI data.”
“We expect January 2015 Tokyo core CPI inflation of +2.2% y-y and +0.3% excluding the impact of the consumption tax hike, down 0.1ppt from December 2014. We look for Tokyo core core CPI inflation of +1.8% y-y and +0.3%, on par with December data."
"We think energy prices will weight on core inflation again in January owing to weak crude oil prices.”