4 May 2015
Japanese inflation likely to see a dip in negative territory – Nomura
FXStreet (Barcelona) - Japan Economists at Nomura, predict Japanese inflation to resume its decline and move into negative territory.
Key Quotes
“The March all-Japan data showed a temporary halt to declines in the inflation rate, but we think a resumption of the downtrend likely, as suggested by the April Tokyo data.”
“We expect the inflation rate to fall further against a backdrop of (1) energy prices declining further owing to the second wave of effects from sharply lower prices for crude oil, and (2) weakness in the core core CPI until consumer spending picks up in Jul-Sep.”
“At this point we stick with our view that on a quarterly basis prices will decline y-y for two straight quarters, Apr- Jun and Jul-Sep 2015.”
Key Quotes
“The March all-Japan data showed a temporary halt to declines in the inflation rate, but we think a resumption of the downtrend likely, as suggested by the April Tokyo data.”
“We expect the inflation rate to fall further against a backdrop of (1) energy prices declining further owing to the second wave of effects from sharply lower prices for crude oil, and (2) weakness in the core core CPI until consumer spending picks up in Jul-Sep.”
“At this point we stick with our view that on a quarterly basis prices will decline y-y for two straight quarters, Apr- Jun and Jul-Sep 2015.”