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10 Jan 2014
Flash: Inflation will continue to rise in Japan throughout 2014 - Nomura
FXstreet.com (Bali) - According to Nomura Economists, prices in Japan will continue to rise in FY13 ahead of hike in consumption tax.
Key Quotes
"While the Japanese economy has lost a little momentum since recording its strongest growth of the year, wages and rents have been improving modestly. Factoring in rush demand ahead of the consumption tax hike in addition to these improvements, we believe the Japanese economy will continue to recover in FY13 H2."
"We also continue to expect inflation to pick up steadily as the GDP gap gradually narrows. Looking further ahead, we expect inflation (excluding the impact of the consumption tax hike) to slow temporarily through mid-2014 owing to a drop in consumption after the hike in consumption tax and the disappearance of the boost from the weaker yen."
Key Quotes
"While the Japanese economy has lost a little momentum since recording its strongest growth of the year, wages and rents have been improving modestly. Factoring in rush demand ahead of the consumption tax hike in addition to these improvements, we believe the Japanese economy will continue to recover in FY13 H2."
"We also continue to expect inflation to pick up steadily as the GDP gap gradually narrows. Looking further ahead, we expect inflation (excluding the impact of the consumption tax hike) to slow temporarily through mid-2014 owing to a drop in consumption after the hike in consumption tax and the disappearance of the boost from the weaker yen."