Japanese core consumer prices increased by a fraction for the second consecutive time last month, while the country’s jobless rate plummeted to its lowest recorded levels since 1994. The majority of economists are expecting that an increase in oil prices and a drop in the yen’s value would pave the way for core inflation to rise by almost 1% during the latter part of 2017. However, BoJ’s Kuroda has cautioned that the price momentum of the BoJ’s 2% inflation goal might not be enough and that actual evidence of intrinsic inflation would be needed first before increase their long-term interest rate goal.
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