MNI INTERVIEW2: Trump Stagflationary For Eurozone-ECB's Wunsch

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

MNI: Canada Apr-Aug Budget Deficit Doubles On Spending

MNI China Daily Summary: Friday, October 25

MNI BRIEF: China's Next NPC Meeting Scheduled For Nov 4 to 8

MNI: PBOC Net Injects CNY184.2 Bln via OMO Friday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL OCT INDEX 70.5

MNI: BELGIUM OCT BNB BUSINESS SURVEY -12.8

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

CANADA: Politics Week: Parliament Opens With Early Election Threats

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

JAPAN DATA: Tokyo CPI Headline Softens, But Services M/M Up Firmly

JAPAN DATA
APACJapanData BulletBulletGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets

Japan's Tokyo CPI was as expected for the headline print, 1.8% y/y (prior 2.1%). The core measures were a touch above expectations though, +1.8%y/y for the ex fresh food measure (1.7% forecast and 2.0% prior), while the core ex fresh food, energy measure was 1.8%y/y against a 1.6% forecast (which was also the prior outcome). 

  • In m/m terms, headline CPI rose 0.5% after a 0.3% dip in Sep. The core measures were also up 0.4%m/m for ex fresh food and 0.5% for ex fresh food and energy. Good prices rose 0.5%, while services, key watch point for the BoJ, rose 0.4% m/m. This looks to be the strongest monthly rise going back to early 2021. In y/y terms were up 0.8% from 0.6% prior.
  • This gain appear to reflect a 1.2%m/m rise in entertainment prices (after falling -2.1% in Sep), while medical expenses also rose 0.6%m/m, after a 0.1% rise prior.
  • Elsewhere, food prices stayed firm at +1.4%m/m, while utilities also rose 0.8%m/m.
  • In y/y terms, we didn't see sharp swings in the underlying components, outside of utilities falling to 2.4%y/y from 9.0%.
  • The base effects slow from above 3% y/y from Q3 2024 to sub 2% early 2024. This should help stabilize y/y momentum as we progress into early 2025.
  • This won't shift BoJ thinking for next week's policy meeting but the services inflation backdrop will be a watch point. 
231 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.

Japan's Tokyo CPI was as expected for the headline print, 1.8% y/y (prior 2.1%). The core measures were a touch above expectations though, +1.8%y/y for the ex fresh food measure (1.7% forecast and 2.0% prior), while the core ex fresh food, energy measure was 1.8%y/y against a 1.6% forecast (which was also the prior outcome). 

  • In m/m terms, headline CPI rose 0.5% after a 0.3% dip in Sep. The core measures were also up 0.4%m/m for ex fresh food and 0.5% for ex fresh food and energy. Good prices rose 0.5%, while services, key watch point for the BoJ, rose 0.4% m/m. This looks to be the strongest monthly rise going back to early 2021. In y/y terms were up 0.8% from 0.6% prior.
  • This gain appear to reflect a 1.2%m/m rise in entertainment prices (after falling -2.1% in Sep), while medical expenses also rose 0.6%m/m, after a 0.1% rise prior.
  • Elsewhere, food prices stayed firm at +1.4%m/m, while utilities also rose 0.8%m/m.
  • In y/y terms, we didn't see sharp swings in the underlying components, outside of utilities falling to 2.4%y/y from 9.0%.
  • The base effects slow from above 3% y/y from Q3 2024 to sub 2% early 2024. This should help stabilize y/y momentum as we progress into early 2025.
  • This won't shift BoJ thinking for next week's policy meeting but the services inflation backdrop will be a watch point.