In February the consumer inflation has stopped rising in Japan for the first time in 2 years. The Japanese economy went out of the recession period in the fourth quarter of 2014 but its recovery is still unsteady due to low household and business spending.
The data exerts influence on the central bank in the way of extending its monetary policy as dropping oil prices keep the inflation on a low level. NewForex analyst Aaron Kaufmann assumes that the Bank of Japan will not implement extra stimulus measures until the middle of the year.
Retail sales shed 1.8% in February in Japan, the household spending edged down to 2.9% during the same period.
The level of unemployment is at 3.5%, which is often called full employment. The positive factor is that prices in Japan are falling and salaries are rising. Last year the level of salaries increased by 1%, this year a 2% rise is expected. The factor of well-being returns and it should assist the recovery of the domestic demand.