JAPAN: Japan’s industrial output has increased more than expected in January from a month earlier, led by stronger exports to Asia and the US.
Industrial production in the world’s third biggest economy surged 4.0%, following the 0.8% growth in December and marking the fastest rate of rise since mid-2011, when production soared 6.2%. Analysts, however, had expected a 2.8% increase in January. Looking ahead, the Ministry of Economy, Trade and Industry expected output would pick up 0.2% in February from the preceding month and then fall 3.2% in March. It was also reported that retail sales dropped 2.0% on month in January, worse than a 1.2% decline predicted by economists.
Disinflationary winds are intensifying around the globe. In Japan price pressures continued to fade in January amid sliding oil prices, underscoring the challenge the Bank of Japan faces in its pledge to reach 2% inflation goal. The consumer price index rose 2.2% in January from the year-ago period, against analysts’ forecast for an increase of 2.3% and down from 2.5% in December. Stripping out the effects of the sales tax hike, the nationwide consumer price index climbed 0.2%, below expectations for a 0.3% rise and down from 0.5% in December. The core Tokyo CPI for February, considered a leading indicator, rose 2.2% on year, remaining unchanged from the prior month and in line with expectations.
