Japanese inflationary pressures likely remained soft in July - HSBC

Analysts at HSBC offer a sneak peek into Friday’s Japanese inflation data, stating that the inflationary pressures are likely remained soft last month.

Key Quotes:

“Underlying inflationary pressures likely remained soft in July, although broadly remaining in positive territory.

Real GDP growth in 2Q17 was firm and should continue to put pressure on already extremely tight labour market conditions.

However, wage growth continues to disappoint, with the June average monthly cash earnings actually declining 0.4% y-o-y.”