Japan’s consumer prices rose in March, according to a report released as the central bank decides today on monetary policy.
Prices excluding fresh food increased 0.2 percent from a year earlier, the statistics bureau said today in Tokyo. The median estimate in a Bloomberg News survey of 31 economists was for a 0.1 percent gain.
The Bank of Japan’s inflation forecast, also due today, may show the 1 percent goal adopted in February remains elusive. Economists unanimously forecast the bank will add to stimulus as lawmakers press for aggressive steps to spur growth and shake off more than a decade of deflation.
Shirakawa aims to contain expectations for monetary action in the face of pressure from lawmakers in the ruling Democratic Party of Japan and opposition Liberal Democratic Party. In a speech in the U.S. earlier this month, he said that central banks “cannot reasonably deliver solutions to structural issues” and the key challenge for Japan is rapidly changing demographics.
“Considering that the Japanese financial conditions are probably the most expansionary among developed economies, the failure of Japan to shake off modest deflation can mostly be explained by its deteriorating growth potential,” the central banker said.
To contact the editor responsible for this story: Stephanie Phang at email@example.com