Japan retail sales rose 0.4% mom, 1.6% yoy in February, slightly higher than expectation of 0.6% mom, 1.7% yoy. And it’s marked improvement from January’s -1.6% mom, 1.5% yoy.
It’s noted that consumer spending could be at the beginning of mild recovery. Improvement is also seen lately in the labor market. Overall picture suggests that consumption is going to pick up momentum. And that should eventually help lift. inflation.
But for now, core inflation is still way off BoJ’s 2% target and it will take some more time for BoJ to start considering stimulus exit.
