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Japan: Inflation strengthens case for further BOJ easing

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Bali) - Japanese inflation remains depressed, as shown in today's boat-load of CPI data, making the case for further easing more compelling, should the Bank of Japan remain credible and committed to its 2% mandate.

    Today's data shows national CPI y/y for December at 0.2% vs expected 0.2% and prior 0.3%, national CPI y/y excluding Fresh Food for December stood at 0.1% vs expected 0.1% and prior 0.1%, while national CPI excluding Food, Energy y/y for December came at 0.8% vs expected 0.9% and prior 0.9%.

    As per Tokyo CPIs, the y/y for January came at -0.3% vs expected 0.0% and prior 0.1%, Tokyo CPI excluding Fresh Food y/y for January stood at -0.1% vs expected 0.1% and prior 0.1%, while Tokyo CPI excluding Food, Energy y/y for January was 0.4%, expected 0.6% and prior 0.6%.

    If the data was not bad enough, overall household spending y/y for December came at -4.4% vs expected -2.5% and prior -2.9%, making it even more difficult to get to the 2% inflation objective as consumer remain cautious on their spending, resulting in an ability to push up price pressures.
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