Japan GDP Deflator YoY Final

Info

History

Chart

Impact:

Low

Source: Cabinet Office, Japan

Latest Release:

Date:

Actual:

3.4%

Forecast: 3.4%

Previous/Revision:

2.4%

Period: Q1

What Does It Measure?

The GDP Deflator measures the price inflation or deflation for all goods and services included in a country's Gross Domestic Product (GDP), specifically focusing on the change in price level relative to the previous year. This indicator assesses overall economic health by providing insights into inflation trends, with a key measure being that a GDP Deflator above 100 indicates inflation from the previous year, whereas below 100 indicates deflation.

Frequency

The Japan GDP Deflator is released on a quarterly basis, typically published several weeks after the close of the quarter, and is considered a final figure, representing a refined estimate after initial data has been adjusted.

Why Do Traders Care?

Traders monitor the GDP Deflator as it is an important indicator of inflation, which can significantly influence monetary policy and interest rate expectations. Rising inflation reported through the Deflator can lead to a strengthening of the Japanese yen (JPY) and impact markets for equities and bonds as investors adjust their forecasts for economic growth and central bank actions.

What Is It Derived From?

The GDP Deflator is calculated using nominal GDP and real GDP, deriving the price level from the ratio of these two measures. It involves comprehensive data collection from a wide array of sectors within the economy, incorporating diverse goods and services to provide a holistic view of price changes.

Description

The GDP Deflator is essential for understanding inflation as it captures price changes across the entire economy, unlike other measures that may focus on specific goods or sectors. It serves as a crucial tool for policymakers, economists, and analysts in assessing inflationary pressures and making informed decisions.

Additional Notes

The GDP Deflator is considered a coincident economic indicator, providing real-time insights into the state of inflation in the economy. Its results are often compared to other inflation metrics, such as the Consumer Price Index (CPI) and Producer Price Index (PPI), to offer a comprehensive view of price stability and economic conditions.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for JPY, Bearish for Stocks. Dovish tone: Signaling lower interest rates or economic support, is usually good for the JPY but bad for Stocks due to cheaper borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise
Jun 08, 2015		3.4%	3.4%	2.4%