MNI: Japan Govt Tweaks CPI Assessment; 2nd Straight Month
Japan’s government tweaked its consumer price index assessment for the second straight month but left its main economic assessment from the previous month in January for the third straight month
Japan’s government tweaked its consumer price index assessment for the second straight month but left its main economic assessment from the previous month in January for the third straight month, the Cabinet Office said on Thursday.
Consumer prices “have been rising moderately recently,” the government said.
The previous view held consumer prices “have been rising at moderate tempo recently.”
An official at the Cabinet Office told reporters that, while the government tweaked its assessment, this did not not show a change to the underlying trend assessment.
As for the overall assessment, the government repeated that the Japanese economy is recovering at a moderate pace, although it recently appears to have paused in part despite the magnitude 7.6 earthquake that struck Ishikawa Prefecture on Jan 1.
“The government needs to pay great attention to the impact of the quake on the economy," mainly production activity and supply-chains in addition to tourism, it said.
The government lowered its assessment on exports for the first downward revision since January 2023, noting they “appears to be pausing after picking up recently.” The previous view noted exports showed momentum.
The government left its assessment on other major economic components, including private consumption and production.
As for the near-term outlook, the government maintained its optimistic view, saying the economy will continue to recover at a moderate pace with the improving employment and income situation, supported by the effects of its policies.
However, the government maintained its cautious view, reiterating that slowing of overseas economies presents a downside risk to the Japanese economy, including the effects of global monetary tightening and concern over the Chinese economy.
"Full attention should be given to price increases, the situation in the Middle East and fluctuations in the financial and capital markets,” the government added.
“In addition, full attention should be given to the economic impact of the 2024 Noto Peninsular Earthquake.”
The government maintained the assessment on overseas economies for the ninth straight month, saying that the world economy is recovering, despite weakness in some regions.