Ahead of tonight's Japan CPI release..........>

JAPAN: Ahead of tonight's Japan CPI release (2330GMT), analysts at Barclays

estimate that nationwide core inflation (y/y) eased to 0.8% in January. They

look for core CPI inflation to hold around 0.8- 0.9% y/y through June, then

strengthen to above 1% y/y in Q3, marking the peak for 2018.

- Daiwa note higher food prices seem likely to have lifted headline inflation in

January. But while the PMIs hinted at additional pressures, the BoJ's forecast

core CPI will do well to match December's 0.9%Y/Y pace as last January's rare

0.2%M/M increase will roll out of the calculation.

- Nomura expect the January all-Japan core CPI (ex-fresh food) to rise 0.8%

y-o-y, 0.1pp lower than the December reading. As the boost from energy prices

weakens, they look for inflation to ease back temporarily. Nomura expect the

January all-Japan core core CPI (ex-energy and food, except alcoholic beverages)

to rise 0.1% y-o-y, unchanged from December. Finally, they forecast all-Japan

CPI inflation excluding fresh food and energy (the BOJ's preferred measure of

core core inflation) to have risen by 0.3% y-o-y in January, again unchanged

from December."