although many retailers anticipate new increases in food products next yearthe Inflation outlook and BOJ policy tightening schedule clouded by global recession risk and the uncertainty about the rhythm of salary increasesaccording to analysts.
“The hurdle for policy normalization is not low. The world economy may worsen in the first half of next yearwhat will hinder that the Bank of Japan take action that can be interpreted as a hardening of monetary policy,” says Takeshi Minamichief economist at the Norinchuki Research Institute speaking to Reuters.
The Core Japan Consumer Price Index (CPI)what excludes the volatile food cool but It includes the energy costs, rose 3.7% in November with respect to the previous year, showed the data on Friday, matching the forecasts of the market and by on the rise of 3.6% in October.
Its about largest increase since 4% recorded in December 1981when inflation was still high due to the impact of the 1979 oil crisis and the boom of the economy.
Apart from the utility bills, went up prices for a wide range of productsfrom the fried chicken to smartphonesthrough air conditioners, in a sign of mounting inflationary pressure, the data showed.
many analysts are waiting that core consumer price inflation to move closer to the 2% target again set by the Bank of Japan for the coming year, as the base effect of past fuel price increases dissipates and enter into force from february the impact of government subsidies to curb electricity prices.
The index that excluding fresh food and energy prices rose 2.8% in November compared to the previous year, accelerating with respect to the 2.5% increase registered in October.
Source: Ambito
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