Japanese inflation ticks up, but spending still weak
Japanese inflation picked up in March for the first time in 10 months, data showed Friday, but household spending tumbled in a worrying sign for consumer confidence.
Core inflation, excluding volatile fresh food prices, hit 2.2 percent year-on-year, accelerating from the previous month for the first time since May 2014, and offering a sliver of hope for Tokyo's war on deflation.
However, stripping out the impact of a sales tax rise last year, the rate was a tepid 0.2 percent, well short of the central bank's 2.0 percent target.
Analysts say central bank policymakers will almost certainly be forced to expand its monetary easing scheme to jack up prices and counter a downturn in the world's number three economy.
Sustained inflation is a cornerstone of Prime Minister Shinzo Abe's drive to conquer stagnant or falling prices and revive growth.
Comments