Inflation still around zero in Japan, despite the expansive monetary policy of the BoJ (Bank of Japan). In June, the consumer price index stood at 0.1% on an annual basis, at the same level as the previous month. Excluding the price component of fresh food, the figure rose to 0% on an annual basis, from -0.2% in the previous month.
At the last meeting in mid-July, the BoJ lowered its economic growth forecasts in the wake of the coronavirus pandemic, confirming its monetary policy. “The Japanese economy has found itself in an extremely serious situation with the impact of Covid-19, despite the fact that economic activity is gradually recovering,” reads the quarterly report on the economic prospects of the Japanese institution. According to BoJ estimates, the Japanese economy will contract between 4.5% and 5.7% in fiscal 2020 compared to the previous estimate which indicated a contraction of between 3% and 5%.