"Japan's economy is going to improve in the coming months due to a weak yen and a pickup in exports,"
- Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute
Japan's consumer prices posted the forth consecutive year-on-year decline, falling 0.3% in February, according to data released by the Ministry of Internal Affairs and Communications. The drop, however, was milder than a 0.4% decrease expected by analysts. The core CPI, which strips out volatile prices of fresh vegetables, fruits and seafood, was pushed down by depressed prices of air conditioners/heaters and TVs. However, CPI was supported by higher energy costs, which soared 5% from the previous year, pushing up total CPI by 0.42 percentage point.
Japan has been struggling with deflation for almost two decades, and Prime Minister Shinzo Abe pledged to revive the nation's economy and beat lingering deflation.
"Japan's economy is going to improve in the coming months due to a weak yen and a pickup in exports," said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute. "The Bank of Japan will do its best to live up to market expectations by boosting monetary stimulus and that will support corporate and household sentiment."
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