World Biz
Japan inflation unchanged at 3.1% in March: official data
Japan’s consumer prices rose 3.1% in March, matching last month’s figure and roughly in line with expectations, as inflation slows from four-decade highs, government data showed Friday.
The figure, which excludes volatile fresh food prices, was marginally higher than market expectations of a 3.0% rise and even with February numbers.
Friday’s figure comes a week before the Bank of Japan’s first policy decision under new governor Kazuo Ueda, who has said the central bank’s longstanding monetary easing policy is “appropriate.”
The 3.1% figure is above the two-percent target, which has been surpassed every month since April last year, but Ueda’s predecessor argued that Japan was not yet seeing sustained inflation.
Instead, Haruhiko Kuroda said, the price increases reflected temporary distortions like higher energy prices linked to the war in Ukraine and supply chain disruptions.
Still, excluding energy, the data released by Japan’s internal affairs ministry Friday showed prices rose 3.8 percent in March, after a 3.5% rise in February.
The figures are much lower, however than the sky-high inflation seen in the United States and elsewhere that has prompted central banks to hike interest rates.
The data showed rises in the cost of processed foods, gas bills, transportation and telecommunication fees, among others, contributed to inflation.
And it suggests price increases may continue to fall from a January peak, when inflation measured 4.25 on-year — the highest level since September 1981, fuelled in part by higher energy bills.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan has encouraged Gloria Jeans, a prominent Russian high street retail giant, to explore increased sourcing of garments from Bangladesh, particularly focusing on high-value and non-cotton items. The plea was made during a courtesy meeting between Faruque Hassan and Moyeen Ahmed, the regional general manager for Bangladesh and India at Gloria Jeans, held at the BGMEA head office in the capital.
In the meeting, discussions revolved around mutual interests and efforts to strengthen the collaborative relationship between Gloria Jeans and the Bangladeshi garment industry. Faruque Hassan provided insights into Bangladesh’s garment industry initiatives aimed at enhancing manufacturing capabilities, emphasizing the production of high-end products like manmade fiber and technical textile-based garments. Additionally, he highlighted BGMEA’s ongoing endeavors to promote eco-friendly processes and the adoption of a circular economy model in Bangladesh’s ready-made garment (RMG) industry.
The US dollar continued its decline on Wednesday as traders increased bets on the Federal Reserve cutting interest rates in the coming year, fueled by optimistic statements from officials regarding the battle against inflation. Meanwhile, equity markets showed a mixed performance after another subdued day on Wall Street, with attention turning to the central bank’s preferred gauge of prices, set to be released later in the week.
Recent indicators have suggested a softening in the US job market and a slowing economy, though not at a pace that raises significant concerns about a recession. This has led investors to shift back into risk assets, although profit-taking has restrained the latest gains in anticipation of a potential “Santa rally.”
Market data indicates that traders are now anticipating a Fed rate cut in June, with an 80 percent likelihood of such a move in May. Billionaire investor Bill Ackman has even suggested the possibility of a rate cut as early as the first quarter. The dovish comments from Fed officials, falling yields, and adjusted rate expectations have weighed on the dollar, causing it to reach its weakest level since September against the yen, near a four-month low versus the euro and sterling, and lower against various other currencies.
Fed Governor Christopher Waller expressed confidence in the current policy’s ability to slow the economy and bring inflation back to the target, signaling a positive shift. Michelle Bowman, his counterpart, supported potential rate hikes but remained conditional in her assessment. The market’s reaction to these comments has been significant, leading to a decline in the dollar’s value.
Despite the dovish turn, some analysts noted the potential challenge posed by falling yields, which may limit the effectiveness of higher Treasury yields as a substitute for further rate hikes. Equity markets struggled for direction as investors awaited the release of the personal consumption expenditures (PCE) data, the Fed’s preferred guide for inflation.
In Asian markets, Tokyo, Sydney, Seoul, Wellington, Taipei, and Jakarta saw gains, while Hong Kong, Shanghai, Seoul, and Manila experienced declines. The subdued performance on Wall Street persisted, even as reports indicated an increase in US consumer confidence and healthy sales over the recent shopping weekend.
The “Global Sourcing Expo Melbourne 2023,” a three-day international trade exhibition, commenced today at the Melbourne Convention and Exhibition Center in Australia. The event is facilitated by the Bangladesh High Commission in Canberra, with the participation of 19 Bangladeshi enterprises. Among them, 15 garment manufacturers and suppliers are showcasing their products, supported by the Export Promotion Bureau (EPB). Additionally, four other Bangladeshi companies, specializing in RMG and home décor, are partaking in the exhibition.
The inauguration of the Bangladeshi exportable items exhibition at the Global Sourcing Expo in Melbourne was conducted by Bangladeshi High Commissioner to Australia M Allama Siddiqui and Marry Kinsella, the Chief Executive Officer of the organizing firm. Political Counselor Tahleel Delawar Moon and Commercial Counselor Rony Chakma from the Bangladesh High Commission were also present at the inaugural event.
The exhibition draws the participation of around 900 manufacturers and suppliers from 20 countries, marking it as a significant platform in the realm of international trade. These expos are held twice a year in Sydney and Melbourne, offering a crucial avenue for importers, exporters, manufacturers, and suppliers to showcase their products, explore new markets, and foster communication.
In terms of Bangladesh’s exports to Australia, the readymade garment sector constitutes approximately 93 percent. Bangladesh currently holds the position of Australia’s 32nd largest trade partner.
