Increase In Japanese Exports and Inflation
According to the Reuters poll, Japanese exports increased in August on the ongoing trade war threat. Exports are projected to lift 5.6% in August, comparing to 2017 and to 3.9% rise in July. Imports are expected to increase 14.9% on rising oil prices, making a trade deficit of JPY 468.7B. In July, imports were up 14.6% and the trade deficit was JPY 231.2B.
Takeshi Minami (chief economist at Norinchukin Research Institute) noted: "There are no clear signs that global trade friction has affected Japan's exports," and: "But the pace of growth in the nation's exports is sluggish despite a moderate expansion in the global economy, which is a worry for the Japanese economy."
Additionally, Japan's core Consumer Price Index is forecast to have grown in August amid energy costs, prices of accommodation and cellphone communication by 0.9% from a year earlier and up from 0.8% rise in July.
Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute said: "We can not say that demand is boosting consumer inflation yet. We expect core CPI will stay around 0.9 percent for a while".