Japan: GDP steady, inflation near BoJ target – ING

FXStreet Insights Team FXStreet

ING highlights that market consensus sees Japan’s preliminary Q2 Gross Domestic Product (GDP) holding at 0.5% quarter-on-quarter, with Private Consumption remaining the main growth driver. Headline and core Consumer Price Index (CPI) due 21 August are expected at 2.0% and 1.8% year-on-year, respectively. The projected inflation pickup would return national headline inflation to the Bank of Japan’s (BoJ) 2% target, mainly on import price pressures.

Stable growth, modest inflation pickup

"Market consensus is for Japan’s preliminary Q2 GDP, due on 17 August, to remain unchanged at 0.5% quarter-on-quarter, seasonally adjusted."

"Private consumption is expected to remain the main engine of growth."

"Japan releases its headline and core CPI on 21 August."

"The market expects a moderate increase to 2.0% YoY and 1.8% YoY, respectively."

"The projected acceleration in headline inflation would bring the national print back to the BoJ’s 2% target for the first time in recent months, driven primarily by persistent import price pressures."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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FXStreet Insights Team

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