Japan’s Core Inflation Hits Two-Year Low, Might Push BOJ To Ease Again Soon

www.oann.com | 2/26/2015 | Staff
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TOKYO (Reuters) – Japan’s core inflation slowed to its weakest in about two years in June, data showed on Friday, underlining the nation’s long battle to boost consumer prices and adding to speculation the Bank of Japan could deliver more stimulus later this month.

With the global economy slowing and factory production faltering in the face of a bruising Sino-U.S. trade war, BOJ officials have said they remain ready to expand stimulus, joining the U.S. Federal Reserve in signaling an easing may be coming soon.

BOJ - Governor - Haruhiko - Kuroda - Thursday

Indeed, BOJ Governor Haruhiko Kuroda said on Thursday the central bank will scrutinize economic developments until the last minute in deciding policy this month, suggesting that whether to stand pat or increase stimulus will be a close call.

Japan’s core consumer price index, which includes oil products but excludes fresh food prices, rose 0.6% in June from a year earlier, matching economists’ median estimate.

June - Reading - July - Index - %

The June reading was the weakest since July 2017 when the index climbed 0.5% and compared with a 0.8% gain in May.

The so-called core-core CPI, which strips away the effects of volatile food and energy costs and is closely watched by the BOJ to gauge how much the economy’s strength has translated into price gains, was up 0.5% in June from a year earlier.

Data - Bank - Way - % - Inflation

The data shows the central bank is still a long way off from achieving its elusive 2% inflation target as the U.S.-China trade dispute and slowing global demand put pressure on the export-reliant economy.

“The global economy is weakening and energy prices are on...
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