Economics
Japan Price Barometer Points to Deflation Risk This Summer
- Cheaper energy set to knock back Bank of Japan price push
- Lower phone charges and free education to add to BOJ woes
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The inflation outlook is looking dismal for the Bank of Japan as cheaper oil and falling mobile phone charges threaten to push price growth toward zero by mid-summer.
The Bloomberg Inflation Barometer, which draws on eight drivers of prices, points to a sharp slowing in the months ahead as lower oil costs feed their way into electricity bills. Over the past eight years the barometer has shown a 0.84 correlation with consumer prices six months into the future.