Japan Faces Inflation Challenge Amid Consumption Concerns

Japan's inflation is forecasted to slow slightly to 2.6% year-on-year in March, impacted by persistent cost-push pressures on consumption. The Bank of Japan's recent move to end negative interest rates aims to counter a decade-long accommodative policy. Despite a weaker currency, real wages struggle to keep pace with price hikes, affecting consumption patterns. Exports are predicted to rise by 7.0% year-on-year in March, supported by a weakening yen, while imports are expected to decrease by 4.7%, resulting in a trade surplus. Additionally, core machinery orders are projected to rebound by 0.8% month-on-month in February.