Inflation data from Japan for December 2018

CPI 0.3% y/y

  • expected 0.3% y/y, prior 0.8%

CPI excluding fresh food 0.7% y/y

  • expected 0.8% y/y, prior 0.9%

CPI excluding fresh food and energy 0.3% y/y

  • expected 0.3%, prior 0.3%

Its the final one listed that is the one to watch. the target is 2%. Not even close.

The BOJ will maintain very loose monetary policy as long as it is missing target so badly. An alternative is to lower the target (which I have been saying is possibility for a long time, so long I really just wanna STFU about that option).

The Bank of Japan meet next on January 22 and 23, the latest chatter is: