All-Japan core inflation in February to remain unchanged – Nomura

FXStreet (Barcelona) - Research Analysts at Nomura, preview the all-Japanese inflation data to be released on Friday, 27th March.

Key Quotes

“Our forecast for all-Japan core CPI inflation in February 2015 is +2.2% y-y (+0.2% excluding the impact of the consumption tax hike), unchanged from January.”

“We look for all-Japan core core inflation of +2.1% y-y (+0.4%), unchanged m-m for the fourth straight time.”

“In January, the y-y decline in kerosene and gasoline prices widened sharply, but in February we think the declines softened, as a result of which growth in the negative contribution from energy prices was likely minimal.”

“While the downward pressure on prices from sluggish economic activity late last year remains, we saw evidence in February of food processors trying to pass higher input costs on to product prices. We expect these forces to offset each other, resulting in little change in the core inflation rate.”

What's next: EZ PMIs, UK inflation await

The US Dollar and the Japanese Yen were the top performing currencies in Asia, while the Australian Dollar took the back-seat after a dismal China HSBC flash PMI number.
Leer más Previous

Stability in US core inflation essential for a Fed hike – Capital Economics

John Higgins of Capital Economics, comments that with Fed desiring a stable core inflation to begin its policy normalisation, today’s US CPI release will be keenly eyed, and further anticipates US 10-yr yields to end-2015 at 2.5%.
Leer más Next