AI Data Insight
Japan's Q1 2026 GDP deflator fell from the previous value of 115.5 to 112.7, but the final annual growth rate reached 3.2%, indicating that the upward momentum of prices remains robust. During the same period, the annualized quarter-on-quarter real GDP growth rate reached 1.8%, beating market expectations of 1.3%, as strong private consumption injected vitality into the economy. Against the backdrop of inflation expectations and geopolitics pushing up energy prices, the market is highly focused on the Bank of Japan's (BOJ) near-term tightening pace.