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☆ Japan's business mood improves, capex firm in boost to economic outlook
▼ + stars: | 2023-10-02 | by ( Leika Kihara | Tetsushi Kajimoto | ) www.reuters.com time to read: +4 min

TOKYO (Reuters) -Japan’s business sentiment improved in the third quarter, a central bank survey showed, suggesting conditions for a durable economic revival are falling into place even as a global slowdown keeps policymakers cautious about the outlook. Big non-manufacturers’ index stood at 27, up from 23, the survey showed, above a median market forecast of 24 and improving for the sixth straight quarter. The survey showed big manufacturers expect conditions to improve three months ahead, though sluggish global demand and signs of weakness in China’s economy cloud the outlook. “The tankan showed Japan is on track for a domestic-demand led growth. But analysts expect a mild contraction in the July-September quarter as sluggish global demand weigh on exports.

Persons: Maki Shiraki, ”, Marcel Thieliant, Yoshimasa Maruyama Organizations: Nissan, Co, Ltd's, EV, REUTERS, Companies, Bank of Japan, Capital Economics, Big, Nikko Securities Locations: TOKYO, Tochigi prefecture, Japan, Asia, U.S

☆ BOJ keeps ultra-loose policy, dovish guidance on outlook
▼ + stars: | 2023-09-21 | by ( Leika Kihara | Tetsushi Kajimoto | ) www.reuters.com time to read: +3 min

FILE PHOTO: Japanese national flag is hoisted atop the headquarters of Bank of Japan in Tokyo, Japan September 20, 2023. It also left unchanged an allowance band of 50 basis point set either side of the yield target, as well as a new hard cap of 1.0% adopted in July. A Reuters poll for September showed most economists predicting an end to negative interest rates in 2024. But some analysts see the yen, rather than wage growth or inflation, as the primary trigger for BOJ action. Growing prospects of higher-for-longer U.S. interest rates have pushed the yen down near the 150-per-dollar level, seen as Tokyo’s line-in-the-sand for possible currency intervention.

Persons: Issei Kato, Kazuo Ueda’s, Ueda, Haruhiko Organizations: Bank of Japan, REUTERS Locations: TOKYO, Tokyo, Japan, “, U.S

☆ Japan's top currency diplomat says Tokyo in close contact with US on FX moves
▼ + stars: | 2023-09-20 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

[1/2] Japanese yen and U.S. dollar banknotes are seen with a currency exchange rate graph in this illustration picture taken June 16, 2022. Yellen said whether Washington would show understanding over another yen-buying intervention by Japan "depends on the details" of the situation. Last September, Japan conducted its first dollar-selling intervention to prop up the yen in 24 years as the dollar reached around 145 yen to the dollar. Authorities intervened twice in October as the dollar reached close to 152 yen. The Group of Seven (G7) nations require that member states inform their counterparts if they intervene in the currency market.

Persons: Florence Lo, Masato Kanda, Janet Yellen, Yellen, Kanda, Fumio, Tetsushi Kajimoto, Jacqueline Wong, Sam Holmes Organizations: U.S, REUTERS, Rights, Treasury, Authorities, Thomson Locations: Washington, Japan

☆ Japan corporate mood sours on fears of China-led global downturn: Reuters poll
▼ + stars: | 2023-09-14 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +3 min

The gloom across the business sector underlines the challenge for Japanese policymakers and raises doubts that exports could fuel an economic recovery in the face of weak domestic demand. The Reuters Tankan monthly poll of 502 big manufacturers, showed a sharp fall in the sector's sentiment index to plus 4, from plus 12 in August. Compared with three month ago, the manufacturers' sentiment index -- calculated by subtracting the percentage of pessimistic respondents from optimistic ones -- was down four points and suggests decline in the quarterly tankan survey. The Reuters Tankan non-manufacturers index also dropped nine points to hit plus 23 in September from the previous month, the biggest decline since May 2020, the survey showed. The business sentiment over the coming three months showed the manufacturers' index flat in December and the service-sector index slightly down at plus 21 at year-end.

Persons: Tetsushi, Shri Navaratnam Organizations: Reuters, Bank of, Overseas, Thomson Locations: China, TOKYO, Bank of Japan's, Ukraine, U.S

☆ Japan's Kishida: cabinet to ensure wage growth exceeds rate of inflation
▼ + stars: | 2023-09-13 | by ( ) www.reuters.com time to read: 1 min

TOKYO, Sept 13 (Reuters) - Japanese Prime Minister Fumio Kishida said on Wednesday his new cabinet will take steps so that wage growth consistently exceeds the rate of inflation "by several percentage points". "We'll ensure Japan is fully out of deflation," Kishida told a news conference after reshuffling his cabinet. Kishida also said the government and his ruling coalition would aim to compile a "bold" economic package next month to cushion the blow on households from rising living costs. He declined to offer details on how to fund the spending, saying only that the government will consider compiling an extra budget "at an appropriate time". Reporting by Leika Kihara and Tetsushi Kajimoto; editing by Kevin LiffeyOur Standards: The Thomson Reuters Trust Principles.

Persons: Fumio Kishida, Kishida, reshuffling, Leika Kihara, Kevin Liffey Organizations: Thomson Locations: TOKYO, Japan

☆ What will BOJ's policy normalisation path look like?
▼ + stars: | 2023-09-12 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

Bank of Japan Governor Kazuo Ueda speaks at a group interview with media in Tokyo, Japan, May 25, 2023. But his hawkish remarks have pushed up the 10-year JGB yield to a near decade-high of 0.715% on Tuesday. It also likely sees 0.8% as a threshold it wants to defend to avoid the 10-year yield from reaching 1%. That could mean the BOJ will retain the yield cap as a precaution when it raises short-term rates, some analysts say. There are no scheduled public appearances of BOJ executives until governor Ueda's regular news conference, to be held after the BOJ's next two-day policy meeting ending on Sept. 22.

Persons: Kazuo Ueda, Kim Kyung, Kazuo Ueda's hawkish, Ueda, Haruhiko Kuroda, Ueda's, Leika Kihara, Tetsushi, Shri Navaratnam Organizations: Japan, REUTERS, Rights, Bank of Japan, Rengo, NEXT, Thomson Locations: Tokyo, Japan

☆ Japan Finance Minister: Expect BOJ to pursue inflation target with appropriate policies
▼ + stars: | 2023-09-12 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +1 min

Japanese Finance Minister Shunichi Suzuki speaks during the presidency press conference at the G7 meeting of finance ministers and central bank governors, at Toki Messe in Niigata, Japan, Saturday, May 13, 2023. "Specific monetary policy conduct is up to the BOJ to decide," Suzuki said. "I expect the BOJ to continue to liaise with the government closely and conduct monetary policy appropriately, while taking the economy, prices and financial conditions into account, to achieve its price stability target in a stable and sustainable way." Japanese long-term rates spiked on Monday to their highest in nine years and eight months on expectation that the BOJ could shift away from its negative rate policy, following Ueda's remarks in an interview with the Yomiuri Shimbun. The yen also rose sharply against the dollar on Monday after Ueda said on Saturday the central bank could end its negative interest rate policy when achievement of its 2% inflation target is in sight, signaling possible interest rate hikes.

Persons: Shunichi Suzuki, Shuji, Suzuki, Kazuo Ueda, Ueda, Tetsushi Kajimoto, Simon Cameron, Moore Organizations: Toki, Rights, Japanese Finance, Bank of Japan, Yomiuri Shimbun, Thomson Locations: Niigata, Japan

☆ Japan corporate mood sours on fears of China-led global downtown: Reuters poll
▼ + stars: | 2023-09-12 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +3 min

Persons: Tetsushi, Shri Navaratnam Organizations: Reuters, Bank of, Overseas, Thomson Locations: China, TOKYO, Bank of Japan's, Ukraine, U.S

☆ Analysis-China's economic gloom hangs over Japan's long-awaited recovery
▼ + stars: | 2023-09-06 | by ( Tetsushi Kajimoto | Leika Kihara | ) www.reuters.com time to read: +5 min

TOKYO (Reuters) - Policymakers in Tokyo believe China’s deepening economic woes could hit Japan’s fragile recovery, especially if Beijing fails to shore up demand with meaningful stimulus, potentially delaying an exit from ultra-loose monetary policy. China is Japan’s largest trading partner, accounting for 20% of its exports, having replaced the United States in 2020. “Exports to China had already been weak and headwinds to inbound tourism are clearly bad for Japan’s economy,” said Toru Suehiro, chief economist at Daiwa Securities. Firms also promised wage hikes unseen in three decades this year, heightening the case for a retreat from decades of ultra-loose monetary policy. The darkening outlook for Japan’s recovery may push back the timing of a BOJ policy shift.

Persons: Marko Djurica, Kazuo Ueda’s, ”, Hiroyuki Ogawa, Ogawa, Takeshi Niinami, Toru Suehiro, Ueda, Toyoaki Nakamura, “, Seisaku Kameda Organizations: REUTERS, Bank of Japan’s, Reuters, Japan, Komatsu Ltd, Komatsu, Suntory Holdings, Daiwa Securities, Japan’s Sompo Holdings Locations: TOKYO, Tokyo, Beijing, Japan, United States, China

☆ BOJ policymaker sees shift in Japan's deflationary mindset
▼ + stars: | 2023-09-06 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

Policymaker Takata stressed the need to maintain ultra-loose monetary policy for the time being, as slowing global growth was heightening uncertainty on whether the Bank of Japan's (BOJ) 2% inflation target was sustainably achievable. In an earlier speech, he said he believe Japan's economy was "finally seeing early signs" of achieving the 2% target. Two other BOJ board members earlier gave diverging views on how soon the central bank should consider scaling back its radical stimulus. Japan's core inflation hit 3.1% in July, exceeding the BOJ's 2% target for the 16th straight month. BOJ officials have said the central bank must keep interest rates ultra-low until robust domestic demand and sustained wage growth replace rising import costs as key drivers of inflation.

Persons: Androniki, Takata, Hajime Takata, Policymaker Takata, Haruhiko Kuroda, Leika Kihara, Tetsushi Kajimoto, Takahiko Wada, Tom Hogue, Lincoln, John Stonestreet Organizations: REUTERS, Bank of Japan's, CHINA IMPACT, Thomson Locations: Japan, Tokyo, TOKYO, China, CHINA

In a sign of growing pessimism over China, the government also said its monthly economic report for August that "concern over China's outlook" was among risks to Japan's recovery. "Exports to China had already been weak and headwinds to inbound tourism are clearly bad for Japan's economy," said Toru Suehiro, chief economist at Daiwa Securities. "All in all, it's hard to justify tightening monetary policy any time soon." Firms also promised wage hikes unseen in three decades this year, heightening the case for a retreat from decades of ultra-loose monetary policy. The darkening outlook for Japan's recovery may push back the timing of a BOJ policy shift.

Persons: Marko Djurica, Kazuo Ueda's, Hiroyuki Ogawa, Ogawa, Takeshi Niinami, Toru Suehiro, Ueda, Toyoaki Nakamura, Seisaku Kameda, Tetsushi Kajimoto, Sam Holmes Organizations: REUTERS, Bank of Japan's, Reuters, Japan, Komatsu Ltd, Komatsu, Suntory Holdings, Daiwa Securities, Japan's Sompo Holdings, Thomson Locations: Tokyo, Japan, China, TOKYO, Beijing, United States

☆ Japan finance minister offers no clues on intervention as yen weakens
▼ + stars: | 2023-09-01 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

Banknotes of Japanese yen are seen in this illustration picture taken June 15, 2022. Some market players were surprised by the lack of determination to keep the yen from falling beyond 145 yen to the dollar. Traders are watching for any signs of intervention by Japanese officials to shore up the ailing currency. However, Japanese officials have rarely escalated verbal warnings since last month against speculators trying to sell off the yen. The weak yen has driven up import bills for fuel and foods, depriving households of purchasing power and prompting Prime Minister Fumio Kishida to scramble for measures to subsidise gasoline retail prices and to mitigate rises in utility bills.

Persons: Florence Lo, Shunichi Suzuki, Suzuki, Japan's, Daisaku Ueno, Fumio Kishida, Tetsushi Kajimoto, Tom Hogue, Kim Coghill Organizations: REUTERS, Rights, Japanese Finance, Mitsubishi UFJ Securities, Authorities, U.S . Federal Reserve, Bank of Japan, Thomson Locations: Japan

☆ Japan capex growth weakens with companies wary about China slowdown
▼ + stars: | 2023-09-01 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

Capital expenditures climbed 4.5% from a year earlier and fell 1.2% on a seasonally adjusted quarterly basis, finance ministry data showed. If that spreads to bigger cities, that will cool demand for China-bound shipments and capex," said Takeshi Minami, chief economist at Norinchukin Research Institute. If Europe and America, which have held firm so far, cave to inflation pressure, that would further sap Japanese corporate appetite for investment." The capex data will be used to calculate revised gross domestic product figures due on Sept. 8. Corporate recurring profits surged 11.6% during the second quarter from the same period a year ago to hit a record 31.6 trillion yen, while corporate revenues rose 5.8%.

Persons: Takeshi Minami, Minami, Tetsushi Kajimoto, Tom Hogue, Edwina Gibbs Organizations: Norinchukin Research, Thomson Locations: TOKYO, China, Japan, U.S, Europe, America

A man walks in front of the headquarters of Bank of Japan in Tokyo, Japan, January 18, 2023. For years, the government has kept borrowing costs, as measured by assumed interest rates, low, effectively allowing the Bank of Japan (BOJ) to bankroll debt. That is up from 25.25 trillion yen this year, the sources said, requesting anonymity as they were not authorised to speak publicly. For the current fiscal year, the annual budget hit a record 114 trillion yen, boosted by steps to cope with COVID. Social security accounts for nearly one-third of budget spending, making it the lion's share of the overall budget, followed by debt-servicing costs, which make up more than a fifth of the budget.

Persons: Issei Kato, Izuru Kato, Tetsushi Kajimoto, Takaya Yamaguchi, Sam Holmes, Alex Richardson Organizations: Bank of Japan, REUTERS, Rights, Totan, Thomson Locations: Tokyo, Japan, China, North Korea

☆ Japan considering extending gasoline subsidies to year-end - sources
▼ + stars: | 2023-08-29 | by ( ) www.reuters.com time to read: +2 min

Gasoline fuel guns are pictured in front of fuel boards at a gasoline station in Tokyo, Japan September 20, 2022. REUTERS/Kim Kyung-Hoon/File Photo Acquire Licensing RightsTOKYO, Aug 29 (Reuters) - Japan's government is considering extending until year-end fuel subsidies to keep gasoline prices below 180 yen a litre, while working on a supplementary budget to finance broader measures, three people with direct knowledge of the matter said. Earlier, the sources had said the fuel subsidies would be funded by the supplementary budget. Last week, Prime Minister Fumio Kishida instructed ruling party officials to consider steps to extend the fuel subsidies which were introduced in January 2022 to help ease cost of living pressures. Gasoline prices have been rising steadily in Japan due to the weaker yen and higher global prices.

Persons: Kim Kyung, Komeito, Toshimitsu Motegi, Shunichi Suzuki, Fumio Kishida, Yoshifumi Takemoto, Tetsushi Kajimoto, Katya Golubkova, Muralikumar Anantharaman Organizations: REUTERS, Rights, Liberal Democratic Party, Finance, Thomson Locations: Tokyo, Japan

☆ Japan budget requests likely to top 110 trln yen as rates rise - Nikkei
▼ + stars: | 2023-08-25 | by ( ) www.reuters.com time to read: +3 min

FILE PHOTO-An office employee walks in front of the bank of Japan building in Tokyo, Japan, April 7, 2023. REUTERS/Androniki Christodoulou/File Photo Acquire Licensing RightsTOKYO, Aug 25 (Reuters) - Japanese ministries' budget demands for the next fiscal year will likely top 110 trillion yen ($753 billion), the Nikkei business daily reported on Friday, with rising interest rates expected to boost debt servicing costs. This fiscal year's budget stood at 114 trillion yen. It would be the third straight year that budget requests exceed 110 trillion yen and may top a record 111.6 trillion yen requested for fiscal 2022. It's only natural for debt-servicing costs to rise under such circumstances," said Takuya Hoshino, senior economist at Dai-ichi Life Research Institute.

Persons: Androniki, Takuya Hoshino, Fumio, Tetsushi Kajimoto, Diane Craft, Jacqueline Wong Organizations: REUTERS, Rights, Nikkei, Bank of, Dai, Research, Thomson Locations: Japan, Tokyo, China, North Korea

New Governor of Bank of Japan Kazuo Ueda meets Japanese Prime Minister Fumio Kishida at prime minister?s official residence in Tokyo, Japan, April 10, 2023. The discussions took place in the wake of the dollar's recent ascent above 145 yen, a level that in September 2022 triggered Japan's first yen-buying operation since 1998. "There wasn't anything in particular discussed today," Ueda told reporters after the meeting, when asked whether the two held talks on recent exchange-rate volatility. Ueda also said he explained to Kishida the Bank of Japan's decision last month to loosen its grip on long-term interest rates. It was the second such meeting since Ueda assumed the top BOJ post in April.

Persons: Bank of Japan Kazuo Ueda, Fumio Kishida, Kimimasa, Ueda Yen, Kazuo Ueda, Japan's, Ueda, Haruhiko, Shunichi Suzuki, Tetsushi Kajimoto, Satoshi Sugiyama, Chang, Ran Kim, Edmund Klamann Organizations: Bank of Japan, REUTERS Acquire, Ueda, Bank of, Soaring U.S, Treasury, Thomson Locations: Tokyo, Japan, TOKYO

☆ Japan's core inflation eases, bolstering view BOJ will stand pat
▼ + stars: | 2023-08-18 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

The 3.1% rise in the core consumer price index (CPI), which includes oil products but excludes volatile fresh food prices, matched a median market forecast, following a 3.3% increase in the previous month. The so-called core-core inflation index, which excludes fresh food and energy prices and is closely watched by the BOJ as a better gauge of trend inflation, rose 4.3% year-on-year in July, accelerating from the previous month. Still, analysts say an acceleration in service-led inflation is a positive sign that demand-side inflation, which the BOJ is looking to stoke, may be building. Gabriel Ng, economist at Capital Economics, said the key question is whether services inflation can pick up the baton. Food costs were among the major contributors to the overall inflation due to elevated prices of raw materials.

Persons: Takeshi Minami, Gabriel Ng, Ng, Kazuo Ueda, Tetsushi Kajimoto, Sam Holmes Organizations: Bank of Japan, Norinchukin Research, Capital Economics, Reuters, Thomson Locations: TOKYO, stoke

☆ Japan July core CPI rises 3.1% yr/yr, slowing from June
▼ + stars: | 2023-08-17 | by ( ) www.reuters.com time to read: 1 min

FILE PHOTO-People shop daily necessities at a market in Tokyo, Japan March 3, 2023. REUTERS/Androniki Christodoulou/File Photo Acquire Licensing RightsTOKYO, Aug 18 (Reuters) - Japan's core consumer prices rose 3.1% in July from a year earlier, data from the Ministry of Internal Affairs and Communications showed on Friday. The so-called core-core inflation index, which excludes food and energy prices, rose 4.3% year-on-year. The rise in the core consumer price index, which includes oil products but excludes volatile fresh food prices, matched the median market forecast and followed a 3.3% increase in the previous month. For the full tables, go to the ministry's website at: http://www.stat.go.jp/english/data/cpi/index.htmReporting by Tetsushi Kajimoto Editing by Chang-Ran KimOur Standards: The Thomson Reuters Trust Principles.

Persons: Androniki, Tetsushi, Chang, Ran Kim Organizations: REUTERS, Rights, Ministry of Internal Affairs, Communications, Thomson Locations: Tokyo, Japan

☆ Japan exports fall for first time since 2021, stoking concerns about outlook
▼ + stars: | 2023-08-17 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +4 min

Ministry of Finance (MOF) data out Thursday showed Japanese exports fell 0.3% in July year-on-year, compared with a 0.8% decrease expected by economists in a Reuters poll. However, manufacturers are braced for core orders to slide during the current quarter, partly due to the impact from weak offshore demand. Japan exports fall for first time since 2021However, the spectre of a sharper global slowdown and faltering growth in its major market China have raised concerns about the outlook. GLOOMY OUTLOOK TO KEEP BOJ ON HOLD"The Bank of Japan must be aware of downside risks from the global economy. Separate data showed Japan's core machinery orders rose 2.7% in June from the previous month.

Persons: Toru Hanai, Takeshi Minami, Minami, Marcel Thieliant, Tetsushi, Shri Navaratnam Organizations: REUTERS, Ministry of Finance, Norinchukin Research, Bank of Japan, Manufacturers, Cabinet, Capital Economics, Thomson Locations: Tokyo, Japan, TOKYO, China, Europe, America, Asia

Japan’s Q2 GDP grows fastest in more than two yearsMarcel Thieliant, head of Asia-Pacific at Capital Economics, said the export-driven momentum in growth is unlikely to be sustained. Exports expanded 3.2% in the second quarter led by car exports and inbound tourism, while capital expenditure was flat. Strong U.S. and European demand has also supported exports while the post-COVID boom in foreign tourists has given the economy a much-needed tailwind. That boost in external demand, or net exports, added 1.8 percentage points to second quarter growth. It doesn't mean a strong recovery in Japanese economy," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute.

Persons: Kim Kyung, Marcel Thieliant, Thieliant, Takumi Tsunoda, Shigeyuki Goto, Goto, Tetsushi Kajimoto, Pasit Kongkunakornkul, Sam Holmes Organizations: REUTERS, TOKYO, Capital Economics, Private, U.S, Shinkin Central Bank Research Institute, The Bank of Japan, Thomson Locations: Tokyo, Japan, Asia, China

☆ Japan's Suzuki: Not targeting absolute levels on FX intervention
▼ + stars: | 2023-08-15 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +3 min

"It's important for the currency market to move stably reflecting fundamentals. "We're watching market moves with a strong sense of urgency. We'll respond appropriately to excessive moves." Japan will assess whether moves are speculative, volatile or based on fundamentals, rather than focusing on absolute levels, Suzuki added. Japan's top forex diplomat Masato Kanda said later on Tuesday that he would take appropriate steps against excessive currency moves, according to the Jiji news agency.

Persons: Shunichi Suzuki, Shuji, Suzuki, Japan's, Masato Kanda, Jiji, Tetsushi Kajimoto, Kantaro Komiya, Jacqueline Wong, Muralikumar Anantharaman, Sharon Singleton Organizations: Toki, Japanese Finance, U.S, Bank of, Thomson Locations: Niigata, Japan, TOKYO, U.S . Federal, Bank of Japan

☆ Japan Q2 GDP growth led by exports, weak consumption a source of concern
▼ + stars: | 2023-08-14 | by ( ) www.reuters.com time to read: +1 min

FILE PHOTO-A cargo ship and containers are seen at an industrial port in Tokyo, Japan, February 15, 2022. The gross domestic product (GDP) figure translated to a quarterly increase of 1.5%, bigger than a median estimate for 0.8% in a Reuters poll of 18 economists. By key sub-sectors, private consumption, which makes up more than half of the world's third-largest economy, fell 0.5% quarter-on-quarter. Exports expanded 3.2%, while capital expenditures were flat. Reporting by Tetsushi Kajimoto and Kantaro Komiya Editing by Chang-Ran KimOur Standards: The Thomson Reuters Trust Principles.

Persons: Kim Kyung, Tetsushi Kajimoto, Chang, Ran Kim Organizations: REUTERS, Thomson Locations: Tokyo, Japan

☆ Japan wholesale inflation slows again, bolstering case for stimulus
▼ + stars: | 2023-08-10 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

REUTERS/Yuya Shino/File PhotoSummary Wholesale inflation slowest since March 2021Govt subsidy on utility bills weighs on wholesale pricesEasing inflation may keep BOJ stimulus intact for nowTOKYO, Aug 10 (Reuters) - Japan's wholesale inflation eased for a seventh month in July as pressure from high global commodity prices eased, a development economists say is likely to encourage the central bank to keep its monetary stimulus in place. It was the slowest wholesale inflation since March 2021 when prices turned positive to mark 1.0% growth, Bank of Japan (BOJ) data showed. After peaking at 10.6% in December, wholesale inflation has decelerated for seven months in a row. On the month, wholesale prices rose 0.1%, up for the first time in three months. As domestic corporate goods prices continue to slow, consumer prices will also slow from autumn," said Takeshi Minami, chief economist at the Norinchukin Research Institute.

Persons: Yuya, Takeshi Minami, Tetsushi Kajimoto, Sam Holmes, Shron Singleton Organizations: REUTERS, Bank of Japan, Norinchukin Research, Thomson Locations: Tokyo, Japan, TOKYO

☆ Japan's July wholesale inflation slows for seventh month
▼ + stars: | 2023-08-10 | by ( ) www.reuters.com time to read: +1 min

FILE PHOTO-A shopper looks at items at a drug store in Tokyo, Japan, May 28, 2015. REUTERS/Yuya Shino/File PhotoTOKYO, Aug 10 (Reuters) - Japanese wholesale inflation slowed in July year-on-year, easing for a seventh straight month due to softer energy utility costs, central bank data showed on Thursday, a sign the pressures that drove up consumer prices are running their course. After peaking at 10.6% in December, wholesale inflation has slowed for seven months in a row, the data showed. The data underscores the Bank of Japan's view that consumer inflation will slow in coming months as global commodity prices slide from last year's peak levels. Yen-based import prices fell 14.1% in July from a year earlier, falling for a fourth straight month, easing concerns about elevated import bills for companies reliant on raw material imports.

Persons: Yuya, Tetsushi Kajimoto, Sam Holmes Organizations: REUTERS, of, Thomson Locations: Tokyo, Japan

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