Japan consumer inflation seen picking up, still distant from BOJ target: Reuters poll

div classBodysc17zpet90 cdBBJodivpTOKYO Reuters – Japan‘s core consumer inflation likely accelerated in March from a year earlier but was still well short of the Bank of Japan’s price goal, a Reuters poll showed, bolstering the view that the BOJ will lag way behind other central banks in normalising policy.p

pSeparate data is expected to show Japan‘s trade balance remained deep in the red, stoking worries about surging import costs of fuel and commodities, while the yen’s weakening to 20year low past 126 versus the dollar this week adding to the pain.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pNext week‘s data would underscore the challenge for Japan’s central bank. The weak yen has emerged as a political hotbutton issue as lawmakers demand measures to cushion the blow from rising inflation.p

pThe nationwide core consumer price index CPI data, to be released by the internal ministry at 2330 GMT on April 21, likely rose 0.8 in March from a year earlier, faster than a 0.6 gain in February, the poll of 18 economists showed on Friday.p

p“The pace of rises in the core CPI likely returned to prepandemic levels,” said Takeshi Minami, chief economist at Norinchukin Research Institute.p

p“The natiowide core index probably picked up in March as import inflation has strengthened due to the weak yen, rising crude oil and commodity prices.” p

pStill, rising headline inflation does not mean the BOJ would rush to unwind its monetary stimulus anytime soon. On the contrary, the central bank is expected to stick with its powerful stimulus for some time given the view that the current costpush inflation is far from sustainable, analysts say.p

pIts long elusive inflation target is 2.p

pThe trade data, to be issued by the Ministry of Finance at 2350 GMT on April 19, will probably show Japans trade balance remained in a deficit of 100.8 billion yen in March, narrowing from 668.3 billion yen seen in the previous month.p

pImports likely jumped 28.9 in the year to March, outpacing a 17.5 gain in exports, the poll showed.p

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pp Reporting by Tetsushi Kajimoto Editing by Kim Coghillp

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