Japanese 'core' inflation (CPI excluding fresh food) was expected to fall under 2% for the first time since March 2022. It hasn't but is still the slowest pace of increase since then.
Japan CPI ex. Fresh Food & Energy 3.5% y/y, slowest rate of increase since February 2023
- expected 3.3%, prior 3.7%
CPI ex. Fresh Food 2.0% y/y, slowest increase since March 2022
- expected 1.8%, prior 2.3%
Headline CPI 2.2% y/y
- expected 1.9%, prior 2.6%
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The slightly higher than expected rates of inflation will add fuel to those looking for a near term pivot to tighter policy from the Bank of Japan.
USD/JPY has dropped back under 150.55 as I post.
