Japan's consumer prices are expected to have posted a 12th straight month of gains in December, a Reuters poll found, although the persistently modest inflation will pressure the central bank to maintain its stimulus to meet its 2 per cent target, reports Reuters.
Economists project the Bank of Japan will keep its short-term interest rate at minus 0.1 per cent and the 10-year government bond yield target at around zero per cent next week, the poll showed.
Data next week also includes exports for December, which was seen growing for a 13th straight month, thanks to overseas demand for semiconductor manufacturing equipment, steel and cars.
The nationwide core consumer price index (CPI), which includes oil products but excludes volatile fresh food prices, likely grew 0.9 per cent in December from a year ago, the same rate as November, the poll of 20 economists showed.
Economists say price gains in electricity and gas slowed, while those of petroleum products continued to support consumer inflation.
Analysts forecast core consumer prices in Tokyo, available a month before the nationwide data, rose 0.8 per cent in January, also unchanged from December.
"We expect the core CPI index will stay around the same level in the following few months," said Yoshiki Shinke, chief economist a t Dai-ichi Life Research Institute.
"Oil prices and an annual wage negotiations in spring will be closely watched for the outlook for consumer information."