Preliminary data shows Japan’s economy grew 0.5% in Q2, driven by private consumption, while August CPI is expected to hit the BoJ’s 2% goal.
Japan’s preliminary Q2 GDP remained steady at 0.5% quarter-on-quarter, matching market expectations. Private consumption continued to underpin growth, offsetting weaker external demand and import price pressures.
Headline and core CPI for August are forecast at 2.0% and 1.8% year-on-year, respectively. The projected rise in headline inflation would align with the Bank of Japan’s 2% target for the first time in months, primarily due to persistent import costs.
The data reinforces expectations of stable economic expansion, though inflation dynamics remain closely tied to global commodity trends and domestic demand resilience.