Japan Oct CPI seen accelerating, staying above BOJ’s target: Reuters poll
2023.11.17 02:03
© Reuters. Shoppers check food items at a supermarket in Tokyo, Japan January 20, 2023. REUTERS/Issei Kato/File Photo
TOKYO (Reuters) – Japan’s core consumer inflation likely accelerated again in October, staying above the central bank’s 2% price target for a 19th straight month, a Reuters poll found on Friday.
The nationwide core consumer price index (CPI), which strips off volatile fresh food items, likely grew 3.0% in October from a year ago, according to the median estimate of 17 economists, compared with a 2.8% gain in September.
After core CPI hit a peak of 4.2% in January, it slowed below the 3% threshold for the first time in over a year in September as utility bills fell reflecting the lagged effect of past oil price falls.
“The pace of year-on-year growth is expected to increase in October as the government’s subsidies on electricity and gas bills have been reduced,” said Shumpei Fujita, economist at Mitsubishi UFJ (NYSE:) Research and Consulting.
The government will release the October CPI data at 08:30 a.m. on Nov. 24 (2330 GMT, Nov. 23).
Bank of Japan Governor Kazuo Ueda said on Friday the central bank will debate a strategy for exiting ultra-easy monetary policy when sustained achievement of its 2% inflation target approaches.
The government earlier this month compiled a package of measures to cushion the economic blow from inflation that will involve spending of more than 17 trillion yen ($113 billion).
Data on Wednesday showed the economy shrank July-September, snapping two straight quarters of expansion on soft consumption and exports. The data suggests stubbornly high inflation is taking a toll on household spending.
