Inflation data from Japan out now
National CPI for May, 0.4% y/y MISS
- expected 0.5%, prior was 0.4%
National CPI 0.4% y/y excluding Fresh Food for May, IN LINE
- expected 0.4%, prior was 0.3%
National CPI excluding Food, Energy 0.0% y/y for May MISS
- expected 0.1%, prior was 0.0%
- This is the equivalent measure to US 'core' inflation (the closest to)
Tokyo data (Tokyo CPI data is available a month earlier than the National CPI):
Headline CPI y/y for June, 0.0% MISS
- expected 0.3%, prior was 0.2%
CPI excluding Fresh Food y/y for June, 0.0% MISS
- expected 0.2%, prior was 0.1%
Tokyo CPI excluding Food, Energy -0.2% y/y for June MISS
- expected 0.0%, prior was 0.0%
The other data from Japan due at the same time is on a separate post
Well that's a disappointing result for the government and the BOJ. The target for inflation (ps. it's the rate for "National CPI excluding Food, Energy ") is 2%. And not just the target, but stable at that level.
So, no surprise, but its not even close.
The Bank of Japan is expected to cut its inflation forecast in its Tankan report due next week. At least that's a recognition of reality. On the other hand, they are also expected to upgrade their assessment on the economy.