Japan: Energy shock lifts inflation more than GDP – ING

ING’s Min Joo Kang expects Japan’s economy to maintain similar growth to the previous quarter, with first-quarter Gross Domestic Product (GDP) seen rising 0.3% quarter-on-quarter. The war-related energy shock is judged to have limited impact on trade and growth but a more visible effect on inflation. ING forecasts April inflation at 1.8% year-on-year, helped by subsidies that cap broader price pressures.

Growth steady while prices edge higher

"Japan’s upcoming data releases will reveal the economic impact of energy disruptions."

"Energy effects may have a limited impact on growth but a greater impact on inflation."

"We believe the economy continued to grow at a similar rate as the previous quarter."

"We expect GDP to rise 0.3% quarter-on-quarter, seasonally adjusted."

"Inflation is expected to rise to 1.8% year-on-year in April, up from 1.5% in March."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)