Skip to main content

2.5% inflation, border to reopen to tourists in June

Despite a huge pot of excess savings accumulated over the past couple of years, today’s 2.5% inflation print for April is likely to slow the post-Omicron recovery by spooking consumers not used to price hikes. Meanwhile, we doubt PM Kishida’s announcement yesterday that he will reopen the border to tourists in June will do much to repair Japan’s shrinking current account surplus given that Chinese tourists won’t be returning any time soon. As such, we still expect the yen to weaken further to 140 against the dollar by the end of this year. China Drop-In (12th May, 09:00 BST/16:00 SGT): Join our China and Markets economists for a 20-minute discussion about near to long-term economic challenges, from zero-COVID disruptions to US-China decoupling. Register now.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access