The UK’s economy escapes from Brexit bomb

The UK’s high streets are heaving with shoppers notwithstanding June's shock vote to abandon the European Union. Moreover, big businesses have already reported few signs of distress, while some tabloid newspapers are discussing a post-Brexit economic boom.

The overwhelming view from financial experts is that it’s too early to know how the United Kingdom will cope with years of Brexit uncertainty, though there’s a soaring belief that the country can avert a recession, which just weeks ago was regarded as probable.

On the face of it, the early upbeat mood contrasts with the pre-referendum warning from ex-Prime Minister David Cameron that  Brexit would put a bomb under the British economy.

In August, retail sales reversed much of an immediate post-Brexit vote dip, with retailers posting their strongest sales for six months as industry data revealed on Thursday, mostly due to a weaker sterling attracting overseas buyers. 

Japan July consumer prices show the biggest annual fall for three years

In July, Japan's core consumer prices edged down for a fifth straight month and demonstrated the most enormous annual sag for more than three years, as more companies had to hold back price lifts due to poor consumption, thus keeping the major bank under pressure in order to expand an already massive stimulus program.

The gloomy data backs a dominant market view that Japanese premier Shinzo Abe's stimulus programs have turned unable to dislodge the deflationary mindset prevailing among consumers and businesses.  

In July, the nationwide core consumer price index, excluding volatile fresh food prices, but including oil products, sagged 0.5% from a year earlier, as government data revealed on Friday. In fact, it exceeded a median market forecast for a 0.4% drop and it turned a bit bigger than a 0.4% tumble in June.

While dropping energy costs were mostly behind the dip in consumer prices, ascends in imported food prices as well as hotel room rates moderated in a clue that poor consumption is discouraging firms from passing on soaring costs.

Japan July consumer prices

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