Article by ForexTime

Japan released a series of economic data on Friday which revealed a mixed picture for the world’s third biggest economy. The outlook remains challenging for the Japanese economy which slipped into recession in the third quarter.

There is growing skepticism over the Bank of Japan’s (BOJ) ability to achieve its inflation target. Consumer inflation slowed to its lowest level in a year in October. However, industrial output and spending showed further signs of revival.

The nationwide core consumer price index (CPI) – which excludes volatile food prices – rose 2.9 percent in the month from a year ago. The figure was in line with a Reuters poll and follows a 3 percent rise in September.

However, adjusted for an increase in the sales tax hike that took effect in the second quarter, core consumer prices rose 0.9 percent on year, below September’s 1 percent rise and well below the 2 percent target the Bank of Japan (BOJ) aims to achieve by April 2015.

Industrial production rose 0.2 percent on month in October, above expectations for a 0.6 percent decline in a Reuters poll but down from September’s 2.7 percent increase. Meanwhile, retail sales rose 1.4 percent on year, above expectations for a 1.2 percent rise but slower than September’s 2.3 percent increase.

The yen weakened after the flurry of data today. USD/JPY rose to 118.35 yen in the Asian session.

Article by ForexTime

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