TOKYO, July 31 -- Ministry of Economy, Trade and Industry of Japan issued the following news release:
Japan's economic growth is likely to moderate, as trade and other policies in each
jurisdiction lead to a slowdown in overseas economies and to a decline in domestic
corporate profits and other factors, although factors such as accommodative financial
conditions are expected to provide support. Thereafter, Japan's economic growth rate is
likely to rise, with overseas economies returning to a moderate growth path.
The year-on-year rate of increase in the consumer price index (CPI, all items less fresh
food) is likely to be in the range of 2.5-3.0 percent for fiscal 2025, in the range of 1.5-2.0
percent for fiscal 2026, and at around 2 percent for fiscal 2027. The effects of the recent
rise in food prices, such as rice prices, are expected to wane. Meanwhile, underlying CPI
inflation is likely to be sluggish, mainly due to the deceleration in the economy. Thereafter,
however, underlying CPI inflation is expected to increase gradually, since it is projected
that a sense of labor shortage will grow as the economic growth rate rises, and that
medium- to long-term inflation expectations will rise. In the second half of the projection
period, underlying CPI inflation is likely to be at a level that is generally consistent with the
price stability target.
The rest of the document can be viewed at https://www.boj.or.jp/en/mopo/outlook/gor2507a.pdf
Disclaimer: Curated by HT Syndication.
