Disclaimer: The information provided on the Timber Exchange Market Data Hub is sourced from a variety of publicly available data sources and confidential sources that have not been independently verified. Timber Exchange is not responsible for any expenses, damages, losses, or costs incurred as a result of using or relying on the information provided on this site. By using the Timber Exchange Market Data Hub, you agree to use the information at your own risk and acknowledge that any decisions made based on the information provided are done so solely at your own risk.
Japan's inflation may miss 2% target amid consumption stagnation
Posted on June 7, 2024 |
Japan may miss its 2% inflation target if spending remains sluggish, raising doubts about future interest rate hikes.
Household spending has been slow lately despite steady income growth, affecting overall consumption.
Projections from April suggest inflation may stay below 2% from fiscal year 2025 onward if spending doesn't pick up.
While major companies have increased wages, smaller firms, which employ most of Japan's workforce, might struggle to follow suit.
Japan's economy contracted by 2.0% in the first quarter due to reduced spending by both businesses and households.
Analysts expect a rebound in growth this quarter, but a weak yen is increasing import costs for essentials like fuel and food, impacting consumer sentiment.