Kuroda's Next 5 Years (Part 2): Prepare to Ease Again

Japan Economist, Japan Macro Advisors

Takuji Okubo

Japan Economist

Concise and Insightful Analysis on Japan Economy

Japan Macro Advisors

Our mission is to provide a concise and timely analysis on the Japanese economy for the benefit of global audiences. Communication, especially in foreign languages, has always been a weakness for the Japanese, which was fine when Japan's economic might attracted foreign media and various other institutions to study and report on Japan - such days are long gone. In the last two decades, we saw foreign institutions reallocating their resources from Japan to other more exciting parts of the world. As a result, when we read reporting on Japan in foreign media, we sense a subtle but noticeable decline in the depth of understanding what is actually happening in Japan.

Macroeconomics

<p>Core inflation remained low in Japan. The overall consumer price index did rise by 1.4% year on year (YoY) in January 2018, but the rises are due to the inflation in fresh food prices and in energy prices, both external and transitory factors for the Japanese economy. Excluding fresh food and energy, the rise in the National CPI was mere 0.4% YoY in January.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/045/342/original/jma_chart_png_undefined_0%20%2853%29.png?1519357931" class="editor-image img-responsive" data-smartkarma-image-id="45342"></figure><p>One could still argue that there has been a rise in inflation in the past 6 months. The inflation in the CPI excluding fresh food and energy…</p>

Core inflation remained low in Japan. The overall consumer price index did rise by 1.4% year on year (YoY) in January 2018, but the rises are due to the inflation in fresh food prices and in energy prices, both external and transitory factors for the Japanese economy. Excluding fresh food and energy, the rise in the National CPI was mere 0.4% YoY in January.One could still argue that there has been a rise in inflation in the past 6 months. The inflation in the CPI excluding fresh food and energy…

Slow Inflation to Prompt BoJ to Turn More Dovish