Japan's June core inflation near two-year low, adds pressure on BOJ

TOKYO (Reuters) - Japan's core inflation slowed to its weakest in about two years in June, data showed on Friday, adding pressure on the Bank of Japan to deliver more stimulus to meet its 2% price target. The core consumer price index, which includes oil products but excludes fresh food prices, rose 0.6% in June from a year earlier, matching with economists' median estimate.

Reuters July 19, 2019 06:06:35 IST
Japan's June core inflation near two-year low, adds pressure on BOJ

Japans June core inflation near twoyear low adds pressure on BOJ

TOKYO (Reuters) - Japan's core inflation slowed to its weakest in about two years in June, data showed on Friday, adding pressure on the Bank of Japan to deliver more stimulus to meet its 2% price target.

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

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.

The data suggests 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.

BOJ officials have said they remain ready to expand stimulus if the economy deteriorates, joining the U.S. Federal Reserve in signalling an easing may be coming soon.

But BOJ Governor Haruhiko Kuroda on Wednesday kept his upbeat view on the economy, suggesting that he saw no imminent need to ramp up easing measures.

Expectations have risen sharply that the central bank's next move will be to ease further with some economists predicting it could happen as early as this month.

Fed policymakers, moving towards their first interest rate reduction in a decade later this month, have sketched out arguments for whether rates should be cut by a quarter or a half a percentage point.

(Reporting by Kaori Kaneko; Editing by Shri Navaratnam)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

U.S. data suggest economic recovery may be weakening
Business

U.S. data suggest economic recovery may be weakening

By Howard Schneider WASHINGTON (Reuters) - The explosive surge in U.S. coronavirus cases this fall has left a question hanging: When will the economy take its own turn for the worse

Fed, ECB heads give COVID-19 vaccine cautious welcome
Business

Fed, ECB heads give COVID-19 vaccine cautious welcome

FRANKFURT/WASHINGTON (Reuters) - The heads of the Federal Reserve and the European Central Bank welcomed the encouraging results in trials of a vaccine candidate for the novel coronavirus but stressed that the economic outlook will remain uncertain. Fed chair Jay Powell and ECB President Christine Lagarde said the economy was still in for a tough time even if the development of a potential vaccine by U.S. drugmaker Pfizer and German partner BioNTech SE was reason for some optimism further ahead

India's October fuel demand marks first year-on-year gain in 8 months
Business

India's October fuel demand marks first year-on-year gain in 8 months

By Sumita Layek (Reuters) - India's fuel consumption in October registered its first year-on-year increase since February, as slowing coronavirus cases and increased mobility accelerated an economic recovery, data showed on Thursday.