MNI BRIEF: Japan Govt Maintains Domestic, Overseas Assessment

Japan's government left its main economic assessment from the previous month unchanged and also kept its assessment of overseas economies unchanged, the Cabinet Office said on Tuesday.

“The Japanese economy is picking up moderately, although some weakness have been seen recently," the government said. The assessment of economic components was largely unchanged from the previous month.

Despite the rise in the Consumer Price Index to elevated levels, the government left its assessment of inflation and repeated “consumer prices are rising.”

The year-on-year rise in Japan's annual core consumer inflation rate, as Bank of Japan officials expected, accelerated to 4.0% y/y in December, up from November’s 3.7%, and rose to the highest level since December 1981 when it rose 4.0%,

It also said that the world economy continues recovering moderately, “although some weaknesses have been seen in some regions,” such as China and South Korea.

As for the near-term outlook, the government maintained its optimistic view. It said the economy is expected to show signs of picking up, supported by the effects of policies under the “new normal.”

The government, however, warned, “slowing down of overseas economies is a downside risk for the Japanese economy amid ongoing global monetary tightening and other factors.”

It also said that full attention should be given to price increases, supply-side constraints and fluctuations in the financial and capital markets and the spread of infectious diseases in China.