Rising wages, prices add to optimism

14 January 2014 By Andy Mukherjee

The Breakingviews Abenomics Index rose for a third straight month in November, buoyed by increasing consumer prices and improved household earnings. Equity and bond markets remain hopeful that Prime Minister Shinzo Abe’s war on deflation will move closer to its target in 2014.

Context News

The Breakingviews Abenomics Index rose for the third straight month to 94.76 in November, its highest level since September 2008.

Among the 10 components that make up the gauge, five made positive contributions during the month: Wages and consumer prices rose, while the seasonally adjusted current account deficit narrowed. Stocks rose, and bond yields fell further.

Manufacturing output, bank lending, new housing starts and private consumption slipped in November, while inflation expectations were softer than in the previous month.

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