Suzuki speaking following the Japanese CPI data.
Japan January Headline CPI 0.5% y/y (expected 0.6%)
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
