Japanese political leaders are cautious about claiming victory. After more than two years of fighting the recession, they are now seeing April prices recover, the first sign of a possible exit from the recession. Consumer prices, excluding fresh foods, grew by 0,6% compared to a year ago. It is the first positive figure since 2008, according to a Tokyo statistical study. The analysis fully reflects the median of 25 estimates made by a Bloomberg survey.
The Japanese economy minister, Kaoru Yosano, underlines how these first data do not represent a solid sign of recovery, but it is already something. The local Central Bank is determined to maintain its monetary stimulus, unlike China and India which have implemented restrictive policies to stem inflation. "The Central Bank of Japan will increase its aid if it sees weakening demand," said Azusa Kato, an economist at BNP Paribas in Tokyo. The analyst added that "if energy and food costs are removed, consumer prices are practically unchanged".
To appease easy enthusiasm for the aforementioned survey, is the drop in retail sales: -4,8% compared to April 2010, a predictable figure given the effect of the earthquake.
