According to a Reuters survey, Japan's consumer inflation is rising, yet it is still far from the BOJ objective

According to a Reuters survey, Japan's consumer inflation is rising, yet it is still far from the BO ...

TOKYO, April 15 (Reuters) - Japan's core consumer inflation is expected to hit ground in March, but was still not satisfied with the Bank of Japan's price objective, according to a Reuters survey, bolstering the belief that the BOJ will stand far behind other central banks in normalizing policy.

Separate data is expected to show Japan's trade balance remains deep in the red, stoking worries about rising import costs of gasoline and commodities, while the yen's declining to a 20-year low over 126 this week, adding to the pain.

The data from next week would highlight Japan's central bank's woes. The weak yen has emerged as a political hot-button issue as legislators demand action to mitigate the impact of rising inflation.

The nationwide core consumer price index (CPI) data, which will be released by the internal ministry at 2330 GMT on April 21, is expected to increase by 0.8 percent in March than it was in February, up from 0.5 percent. According to a poll of 18 economists, the percentage is expected to increase by 0.6%.

"The pace of rises in the core CPI is likely to return to pre-pandemic levels," said Takeshi Minami, the chief economist of Norinchukin Research Institute.

"The natiowide core index is expected to rise in March, as import inflation has risen due to the weakening of yen, rising crude oil and rising commodity prices."

Despite rising headline inflation, the Bank of Japan is unlikely to rush to dewind its monetary stimulus anytime soon. On the contrary, the central bank is anticipated to stick with its powerful stimulus for some time given the view that actual cost-push inflation is far less viable, according to analysts.

Its long-difficult inflation prediction is 2%.

The trade data, expected to be issued by the Ministry of Finance at 2350 GMT on April 19, will probably show Japan's trade balance remained in a deficit of 100.8 billion yen in March, down from 668.3 billion yen seen in the previous month.

Imports are expected to have risen by 22.8 percent from the previous year to March, outpacing a 17.5% increase in exports, according to a new survey.

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