Japan’s Consumer Price Declines Ease as Oil Costs Take Hold
- CPI is still a long way from the Bank of Japan’s 2% target
- Central bank will update its inflation forecast on Jan. 31
Why We're Not Seeing the Start of Reflation in Japan
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Consumer prices in Japan dropped for a 10th straight month, though the pace of decline eased as oil costs rose, supporting expectations for a return to inflation later this year.
A weaker yen and pickup in oil prices are likely to spur inflation this year, though questions remain on whether the expected gains in CPI will be sustainable, given poor growth in wages and lackluster consumer spending.