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27 Mar 2015
Japan labour market remains tight, but fails to feed into inflation – TDS
FXStreet (Barcelona) - The TD Securities Team reviews today’s Japanese data releases – CPI, retail sales and labour market data.
Key Quotes
“Feb headline CPI eased from 2.4%/yr to 2.2%/yr, but the BoJ’s preferred measure that excludes fresh food fell from +2.2%/yr to +2%/yr.”
“With Tokyo CPI for March unchanged on the month and the strengthening of the Yen on a trade weighted basis since the start of this year, we question whether next month’s official inflation outcome will see inflation pick up.”
“The labour market remains tight, with the Job To Applicant ratio rising from 1.14 to 1.15 and the unemployment rate falling from 3.6% to 3.5%, but it is not feeding into inflation.”
“Retail Sales for Feb rose +0.7%/m, vs a +0.9%/m forecast, -and fell -1.8%/yr more than the –1.5%/yr decline anticipated.”
Key Quotes
“Feb headline CPI eased from 2.4%/yr to 2.2%/yr, but the BoJ’s preferred measure that excludes fresh food fell from +2.2%/yr to +2%/yr.”
“With Tokyo CPI for March unchanged on the month and the strengthening of the Yen on a trade weighted basis since the start of this year, we question whether next month’s official inflation outcome will see inflation pick up.”
“The labour market remains tight, with the Job To Applicant ratio rising from 1.14 to 1.15 and the unemployment rate falling from 3.6% to 3.5%, but it is not feeding into inflation.”
“Retail Sales for Feb rose +0.7%/m, vs a +0.9%/m forecast, -and fell -1.8%/yr more than the –1.5%/yr decline anticipated.”