Japan's Core Inflation Expected to Remain Steady in August
Core consumer inflation, expected to be 1.8 percent year-on-year in August, will continue to stay below the BOJ's 2 percent target.
Japan's core consumer inflation is projected to remain at 1.8 percent year-on-year in August, matching the July level, as opposing economic factors on inflation balance out.
Expected Inflation Rates
Japan's nationwide core consumer price index, which excludes fresh food and includes energy prices, is expected to increase by 1.8 percent year-on-year in August.
Central Bank Targets
Shaped by economists' expectations, this rate will remain at the same level as July while continuing to stay below the Bank of Japan's 2 percent target.
Impact of Subsidies
Mizuho Research Institute analyst Ryohei Ikeda stated that while the increase in oil prices is reflected in daily necessities, electricity and natural gas subsidies are pulling prices down.
Wholesale Prices
Official data released on Friday revealed that wholesale prices in Japan maintained their high levels in August, rising by 7.6 percent year-on-year.
Global Energy Costs
While rising fuel costs, a weak yen, and increasing import prices heighten the price pressure on the economy, oil prices are also heading toward closing the week above $100 for the first time since mid-May.