A few recaps from around the place on the Japanese inflation (and other) figures this morning

Reuters:

  • Japan’s core consumer prices rose for a ninth straight month in March from a year earlier
  • Labor demand improved
  • Further evidence the economy is making headway against years of deflation and stagnation.
  • Ministry of Finance data showed household spending and retail sales weakened in February as snowstorms across Japan kept many consumers at home
  • But signs sales are accelerating this month as shoppers rush to beat a sales tax hike on April 1
  • “The gradual increase in prices is consistent with a narrowing in the negative output gap,” said Hiroaki Muto, senior economist at Sumitomo Mitsui Asset Management…. “The employment situation will also continue to put some mild upward pressure on prices. Consumer spending came in weak, but it will rebound next month.”

Bloomberg:

  • Japan will speed up deployment of government cash in coming months
  • Surprise drop in consumer spending in February triggered concern the nation’s long-awaited inflation is now damaging purchasing power
  • Abe’s administration will pour 40 percent of outlays for the next fiscal year into the April-June quarter; and aim to complete 60 percent of projects by the end of September
  • “We can’t be optimistic about the resilience of the economy after the sales-tax hike,” said Naoki Iizuka, an economist at Citigroup Inc. in Tokyo. “It’s possible the government will have to compile another fiscal stimulus package this year. We expect the Bank of Japan will add easing in June or July.”
  • The data, which include a measure of demand for workers approaching a two-decade high, offer policy makers confidence their drive to end deflation is working, they also flash a warning sign.
  • “Households are suffering from inflation as their incomes haven’t grown much,” Iizuka said. “People are purchasing durable goods to save money before the sales-tax hike, so they have to cut back on non-durables.”

Wall Street Journal:

  • Prices in Japan rose moderately in February
  • Jobless rate continued its fall, offering good news on the government’s drive to rid the economy of deflation
  • Separate data showed that consumer demand was more mixed
  • Retail sales rose but spending by households took a surprise fall in the month, defying expectations of a consumer boom ahead of a sales tax increase in April
  • A government official briefing reporters said the fall in household spending was due in part to severe winter weather over much of the country in February
  • Economists also noted that the household spending figures don’t include some big-ticket items that have seen higher demand ahead of the tax increase, such as newly built homes
  • “You can’t conclude Japan’s spending trend is weak just by looking at that figure because that data is known to be volatile,” said Hamagin Research Institute economist Yuki Endo. “Some factors that are affected by rush-demand ahead of April’s tax hike are not included,” he added.

Reuters

Bloomberg

Wall Street Journal (gated)

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Some divergent views in those recaps …