Japan’s November CPI to remain flat, unemployment rate to be slightly higher

By FXStreet FXStreet (Mumbai) – Japan’s internal affairs ministry will announce consumer inflation data, jobless rate and household spending tomorrow. Japan’s core consumer inflation is estimated to have to have remained flat in November as compared to the previous year. With the oil price falling further, achieving the Bank of Japan’s 2 per cent inflation target now looks like a distant dream. Shuji Tonouchi, senior market economist at Mitsubishi UFJ Morgan Stanley echoed market belief in his statement, “”It will likely take longer than we had previously expected before we see core CPI rising steadily, because the pace of falls in oil prices has accelerated recently”.

A Reuters poll of 21 economists estimates the core consumer price index (CPI), which includes oil products but excludes volatile fresh food prices, to stay unchanged in November from a year earlier. Core CPI had fallen 0.1 per cent fall in October.

Household spending on the other hand will likely fall 2.4 per cent in November as compared to the previous year. Sales of home electronics and cars are believed to have been weak last month. Increase in food prices probably led people to refrain from spending on such items.

Improvement in labor market

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Source:: FX Street