👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Japan Sept consumer inflation seen at 8-year high, above BOJ's target for 6th month: Reuters Poll

Published 10/14/2022, 01:23 AM
Updated 10/14/2022, 01:30 AM
© Reuters. People make their way at  Ameyoko shopping district in Tokyo, Japan, May 20, 2022. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) - Japan's core consumer inflation rate likely hit an eight-year high in September as firms sought to offset pressure from high raw material costs and a sliding yen by hiking their prices, a Reuters poll showed on Friday.

Other data next week is expected to show the trade deficit will come in at nearly $15 billion in September, as the yen's sharp decline this year swelled import costs, according to the poll.

The Japanese currency briefly slid to a 32-year low against the U.S. dollar this week.

Economists forecast the nationwide core consumer price index (CPI), which excludes volatile fresh food prices but includes energy, jumped 3.0% year-on-year in September.

"The main driver behind the increase are rising prices of food such as confectionary products and prepared foods," said Rikuto Minami, an analyst at Mizuho Research & Technologies.

The increase would mark the fastest rise since September 2014. The forecast strongly suggested that core CPI would stay above the central bank's 2% inflation target for a sixth consecutive month.

The Bank of Japan will hold its next policy meeting on Oct. 27-28. It has kept its short-term interest rate target at -0.1% and maintained its pledge to guide 10-year government bond yields around 0% despite broadening price pressures, bucking a global trend of aggressive policy tightening.

Governor Haruhiko Kuroda has repeatedly vowed to keep the BOJ's stimulus effort intact, because any cost-push rise in inflation would be temporary.

Separate data is likely to show Japan suffered a trade deficit of 2.167 trillion yen ($14.70 billion) in September due to high import costs that are being aggravated by the weakening yen, according to the poll.

It would be the 14th straight month of deficits and follow a record 2.817 trillion yen shortfall in August. Imports by value likely surged 45.0% in September from a year earlier, outpacing a 27.1% rise in exports, the poll showed.

© Reuters. People make their way at  Ameyoko shopping district in Tokyo, Japan, May 20, 2022. REUTERS/Kim Kyung-Hoon

The government will release the consumer price data on Oct. 21 at 8:30 a.m. (Oct. 20, 2330 GMT) and the trade balance data on Oct. 20 at 8:50 a.m. (Oct. 19, 2350 GMT).

($1 = 147.4000 yen)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.