Economics
Japan Stuck in Inflation Doldrums With Core CPI at 0.5%
- Price increases minus food and energy stay nearly flat
- BOJ’s 2 percent inflation target for 2019 still far off
WisdomTree's Koll Says Japan's Economy in Sweet Spot
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Japan’s key measure of price changes rose ever so slightly in July, lagging well behind gains in economic growth as the central bank struggles to spur significant improvement in inflation.
Price increases are still well below the Bank of Japan’s 2 percent target, even as the economy expands. The BOJ was forced to push back the projected timing of meeting the objective for the sixth time at its July policy meeting, despite years of extraordinary monetary easing. Inflation minus fresh food and energy has been mostly flat. All this means that the BOJ is likely to continue with its stimulus while its counterparts in the U.S. and Europe look to wind back their programs.