Japan’s Inflation Down to 0.7% in April

Consumer prices in Japan had increased by 0.7 percent in the previous month, according to the data shown by the government on Friday. The figures were weaker compared with the past months and far from the prevailing target. Tokyo strived to reach the two percent inflation rate target which is said to be really important to expand the Japanese economy.

Moreover, the Bank of Japan had a decline on its timeline to overcome its predominating inflation target in April. Based on the government data in Friday, the core inflation rate remained at 0.7 percent last month which excludes volatile prices for fresh foods, the results were lower compared to 0.9 percent in the recent months and were slightly less than the market expectations of 0.8 percent. The ministry further stated that if the prices for fresh and energy were removed, the result will be even lower by 0.4 percent last month.

The updated data from Japan drifted to reverse for the first time this year after two years, it further affected by the weak consumption and winter weather. The world's third-largest economy shrunk by 0.2 percent quarterly during Q1 versus 0.1 percent growth recorded at the end of 2017, as indicated in the data from the Cabinet Office issued earlier this week.

With this, Japan’s eight straight quarterly growth ended and a winning streak did not happen after the "miracle" boom in the 1980s where Japan was stronger over other countries. Japan fought against deflation for several years and the BOJ’s ultra-loose monetary policy seems to have a slight impact. The central bank hinted its plan not to end the policy in spite of further moves by other major countries.