Japan's Soft Inflation Is Temporary And Won't Alter BoJ's Rate Hike Cycle

ING Economic and Financial Analysis5.27K FollowersFollow5ShareSavePlay(5min)CommentsSummaryJapan’s consumer prices fell more than expected. Still, the Bank of Japan is likely to look through the recent inflation slowdown and focus on upside price risks.Healthy wage negotiation results and firmer-than-expected PMIs raise the possibility of an April rate hike.Still, the timing could shift, depending on the situation in the Middle East. Richard Drury/DigitalVision via Getty Images By Min Joo Kang, Senior Economist, South Korea and Japan Government utility subsidies lower the inflation in February Japan’s consumer price inflation eased faster than expected to 1.3% year-on-year in February (vs. 1.5% in January and market consensus). LowerThis article was written byING Economic and Financial Analysis5.27K FollowersFollowFrom Trump to trade, FX to Brexit, ING’s global economists have it covered. Go to ING.com/THINK to stay a step ahead. We’re sorry we can’t reply to individuals' comments.Content disclaimer: The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument.This publication has been prepared by ING solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. For our full disclaimer please click here.