Headline CPI has risen for 5 months in a row. Once energy prices are excluded though the country is showing deep disinflation (January was -0.7% y/y once surging fuel prices were taken out).
Suzuki:
recent price rises driven mostly by increases in energy costs, though
forex moves also has had some impact
if inflation rises before
improvement in job market, wage hikes kick in, that could affect
consumption
will closely watch global economic
developments including inflation, energy price moves
govt ready to deploy necessary
fiscal stimulus as economy still suffering from covid-19 crisis
it’s true japan’s fiscal situation
becoming more severe
Japan must maintain its resolve to
get its fiscal house in order
