Japan's Wholesale Prices Miss Forecast, Deflation Fears Rise

Japan’s Wholesale Prices Miss Forecast, Deflation Fears Rise

Posted Monday, October 12, 2020 by
Arslan Butt • 1 min read

Wholesale prices in Japan fell for the seventh consecutive month during September, raising fears of a risk of deflation in the country. According to data released by the BOJ, wholesale prices or the CGPI fell by 0.8% YoY in the month of September, after falling by 0.6% in the previous month.

The decline was even steeper than economists’ forecast, which was for a 0.5% fall instead. On a monthly basis, the CGPI fell by 0.1% from August – the first monthly decline seen since four months.

The continued decline in wholesale prices is likely to drive consumer inflation weaker, indicating a contraction in domestic consumption, and heightens concerns that Japan could experience deflation. Markets are expecting the BOJ to revise its inflation forecasts lower from the current 2% target at its rate review meeting later this month.

According to a BOJ official, “With the global economy still reeling from the pandemic’s pain, the pace of its recovery remains modest. That will weigh on Japan’s wholesale inflation.”

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Safe havens such as Gold and the JPY have been taking advantage of the financial troubles with the ban king system and lower FED rate odds
1 day ago
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments