Research Team at Wells Fargo, expects the Japanese CPI to print -0.1% tomorrow as compared to the 0.2% in its previous print and below the market consensus of 0.0% (Year-over-Year). Key Quotes “While not alone among advanced economies in facing an environment of frustratingly low inflation, Japan is arguably one of the more prominent examples. The country has dealt with outright deflation for a sizeable portion of the past 15 years or so. Meanwhile, despite nearly three years of Abenomics, a program partly aimed at stimulating growth and spurring sustained inflation, Japan remains mired in an environment of stagnant growth and flat prices. The Bank of Japan (BoJ) is clearly making an effort to counteract deflationary forces, with an ¥80 trillion per year monetary base expansion and the recent introduction of negative interest rates on new commercial bank deposits at the BoJ. That said, we suspect Japan needs broader structural reform and fiscal policy support in order to foster sustained economic growth and price stability.” For more information, read our latest forex news.