July national inflation data, and for Tokyo, August data (those hipsters in Tokyo are always a month ahead)
National CPI for July, 0.4% y/y ... in line
- expected 0.4%, prior was 0.4%
National CPI excluding Fresh Food for July, 0.5% y/y in line
- expected 0.5%, prior was 0.4%
- that's the highest since March of 2015
- 7th consecutive y/y rise
National CPI excluding Food, Energy July, 0.1% y/y in line
- expected is 0.1%, prior was 0.0%
Tokyo CPI y/y for August, 0.5% y/y .... higher than expected
- expected 0.3%, prior was 0.1%
Tokyo CPI excluding Fresh Food for August, 0.4% y/y ... ditto
- expected 0.3%, prior was 0.2%
Tokyo CPI excluding Food, Energy for August, 0.0% y/y ... ditto
- expected -0.1%, prior was -0.1%
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Note the "National CPI excluding Fresh Food "
- highest y/y since March of 2015
- 7th consecutive y/y rise
But, then compare it with the "National CPI excluding Food, Energy ", which only rose 0.1% y/y. Energy prices the big driver, which impact will decline. Slow wage growth will then weigh, holding back the CPI again.
For as long as the Bank of Japan hold onto its 2% target there will be plenty more work for them to do. (If you read my posts here on ForexLive you'll have noted I am wary that the BOJ will drop the 2% target ... I am nominating the end of Kuroda's term next year as a natural 'break' to bring in a new target. that is just me guessing though and I have not chiselled it in stone.)
USD/JPY is going nuts, all over the place.
OK, I'm lying. Is this thing on?
