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Translated by: Himalaya UK – Badman

On May 20, data released by the Japanese government showed that Japan’s core consumer price index (CPI) in April was up 2.1%, and core consumer inflation exceeded a BOJ target of 2% for the first time in seven years. Rising energy and commodity costs have led to a general rise in prices, putting pressure on households.

The April’s rise in the core consumer price index (CPI) announced on Friday reinforces market skepticism that the Bank of Japan (BOJ) will continue its ultra-lax monetary policy, particularly as households suffer from increasing costs without substantial wage growth. That is the fastest one-month gain since March 2015.

 It was much stronger than the 0.8% annual rise seen in March, but that earlier figure was more strongly affected by a big drop in mobile phone fees fading out of the calculation.

The CPI remains low compared to the US and other advanced economies because Japanese companies cannot easily raise prices when wage growth is weak.

The central bank is holding monetary policy extremely loose, seeking to keep inflation at 2% and supported by strong wage growth. Even though other major central banks are tightening their policy, it is taking that stance.

Reference link: https://gnews.org/post/p2581916/

Proofread/Edited by: AlexZ
Posted by: AlexZ

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