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Japan's inflation expectations gauge hits record high as yen weakness pushes up cost of living

Japan's inflation expectations gauge hits record high as yen weakness pushes up cost of living

2024/04/08 07:38

A gauge of investors' expectations for Japan's inflation hit a record high, with a weak yen putting upward pressure on the cost of living, Kim Ten reported. Martin Whetton, head of market strategy at Westpac Banking Corp. in Sydney, said rising breakeven inflation could be driven by surging energy prices and a weaker yen. Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities in Singapore, predicts that the market may push the break-even inflation rate higher before feeling confident about the timing of the Bank of Japan's next rate hike. Wage increases from recent negotiations and upcoming tax cuts in June are likely to boost economic activity and consumption.

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