MNI China Daily Summary: Tuesday, November 26

MNI: Japan Govt Keeps Economic Assessment, Ups Imports

MNI BRIEF: China Supports Globalisation Despite Turbulence

MNI: PBOC Net Injects CNY11.0 Bln via OMO Tuesday

MNI: PBOC Sets Yuan Parity Lower At 7.1910 Tues; -1.46% Y/Y

MNI China Daily Summary: Monday, November 25

MNI: UK NOV BRC SHOP PRICES +0.2% M/M, -0.6% Y/Y

MNI: JAPAN OCT SERVICES PPI +2.9% Y/Y; SEPT REV +2.8%

EZ/UK T-Bill Calendar: 2/3-Month ATB Auction on Tuesday

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

JAPAN DATA: Services PPI Above Forecasts, Supports Inflation Outlook

JAPAN DATA
APACJapanData BulletBulletMarketsFixed Income BulletsForeign Exchange Bullets

The Japan services PPI print was stronger than forecast for Oct. It rose 2.9% y/y, against a 2.5% forecast and a revised 2.8% gain in Sep (the original print was +2.6%y/y). In m/m terms we rose 0.8%. 

  • At face value, this points to a supportive backdrop for headline CPI in Japan. The chart below overlays the services PPI y/y (which is the white line) against headline CPI y/y. Recently we have seen a modest divergence between the two series, but the historical direction correlation is firm.
  • Services/domestic related inflation has been a key focus point for the BoJ as it looks for a durable inflation backdrop around its 2% inflation target. Today's data helps this case at the margin. Last week BoJ Governor Ueda stated the outcome of the Dec meeting couldn't be predicted, which suggests it will be a live meeting. 

Fig 1: Japan Services PPI & Headline CPI Y/Y 

Keep reading...Show less
156 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The Japan services PPI print was stronger than forecast for Oct. It rose 2.9% y/y, against a 2.5% forecast and a revised 2.8% gain in Sep (the original print was +2.6%y/y). In m/m terms we rose 0.8%. 

  • At face value, this points to a supportive backdrop for headline CPI in Japan. The chart below overlays the services PPI y/y (which is the white line) against headline CPI y/y. Recently we have seen a modest divergence between the two series, but the historical direction correlation is firm.
  • Services/domestic related inflation has been a key focus point for the BoJ as it looks for a durable inflation backdrop around its 2% inflation target. Today's data helps this case at the margin. Last week BoJ Governor Ueda stated the outcome of the Dec meeting couldn't be predicted, which suggests it will be a live meeting. 

Fig 1: Japan Services PPI & Headline CPI Y/Y 

Keep reading...Show less