Japan’s headline inflation rate for August accelerated 0.4 %-points to 1.3%, but most of the jump was due to energy costs, explains the research team at Rabobank.
Key Quotes
“Indeed the core measure, which excludes food and energy, only inched up one tenth to 0.4%, underlining the BoJ’s challenges. This week the bank reinforced its image as still being the most accommodative central bank in the G7, even though it trimmed purchases of long-term bonds (>25 years maturity) from JPY60bn to JPY50bn in its regular operation today.”
“Meanwhile, a 0.4 points rise in the manufacturing PMI for August, also published this morning, offers a small ray of light although the trend of slowing growth of activity in the sector since the start of the year does not appear to have been arrested convincingly yet.”
Share
