Japan: GDP steady, inflation near BoJ target – ING

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."