Japan preliminary Q2 GDP +1.5% q/q (vs. expected +0.8%)

<p>Huge beat for Japanese economic growth. </p><p>Note the Deflator, it's a measure of inflation and its jumped to +3.4%, well above Q1 and what was expected, although I have seen higher estimates elsewhere. The +3.4% q/q is its highest since Q1 of way back in 1981.</p><p>More:</p><p>Domestic private consumption -0.5% in Q2, a very disappointing result and its first fall in 3 quarters</p><ul><li>expected +0.1%, prior +0.5%</li></ul><p>External demand +1.8% q/q</p><ul><li>expected +0.9%, prior -0.3%</li></ul><p>-</p><p>USD/JPY is not doing a whole lot, its lower by a few points. That higher inflation measure argues for some sort of trimming of easing from the Bank of Japan. The Bank continues to insist that inflation is transitory though. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.