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27 May 2014
Weakening deflation in Japan - RBS
FXStreet (Guatemala) - Strategists at RBS explained that they think the Japanese economy has largely overcome deflation.
Key Quotes:
“Japan's national core CPI (excluding perishable foods) recently rose 1.3% YoY, a significant advance spurred by Japan's unconventional monetary easing policy in April 2013”.
“We think the economy has largely overcome deflation in terms of the headline value. Furthermore, core-of-core CPI (which excludes foods, though not alcoholic beverages, and energy) stabilised at a positive rate recently, with a 0.7% YoY gain in March, after languishing in negative territory in the past. This trend suggests to us that Japan's price upswing is not relying on yen depreciation or other supply factors”.
Key Quotes:
“Japan's national core CPI (excluding perishable foods) recently rose 1.3% YoY, a significant advance spurred by Japan's unconventional monetary easing policy in April 2013”.
“We think the economy has largely overcome deflation in terms of the headline value. Furthermore, core-of-core CPI (which excludes foods, though not alcoholic beverages, and energy) stabilised at a positive rate recently, with a 0.7% YoY gain in March, after languishing in negative territory in the past. This trend suggests to us that Japan's price upswing is not relying on yen depreciation or other supply factors”.