Core inflation likely to gradually slow towards year-end – BOJ quarterly report

  • Japan’s economy is likely to continue recovering moderately for the time being
  • The rate of increase in CPI is likely to decelerate
  • But it is projected to accelerate again moderately as the output gap improves and as
    medium- to long-term inflation expectations and wage growth rise
  • There are extremely high uncertainties for Japan’s
    economic activity and prices
  • The balance of risks to economic activity are skewed to the downside
  • Risks to prices are skewed to the upside
  • Full report

Here are the changes in estimates made by BOJ policymakers as compared to their previous report in April:

This article was written by Justin Low at www.forexlive.com. Source