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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 DATA
Japan national July CPI data printed in line with market expectations. The headline printed at 3.3% y/y, which was also the June outcome. The ex fresh food print was 3.1%y/y (prior 3.3%), while ex fresh food and energy was 4.3% y/y, also in line with expectations (prior 4.2%). The core measure which strips out all food and energy was 2.7% y/y, versus 2.6% in June.
- In m/m terms, the headline CPI rose 0.4% (0.2% prior), with goods up 0.3%, while services inflation spiked 0.5% in seasonally adjusted terms (versus flat outcomes back to the start of the year).
- A +2.1% m/m rise in entertainment and +1.6% in transport and communication appeared to drive the firmer services print. Higher food and fresh food prices contributed to headline rise, while utilities (-2.0%) and clothing (-1.2%) were the main drags the other way.
- In y/y terms, from a momentum standpoint, utilities prices continued to soften (-9.6%), but for other sub categories we remained around recent y/y levels. The step up in food and entertainment y/y momentum were the exceptions.
- So, whilst headline inflation and core (ex fresh food) have moved comfortably off earlier 2023 highs, the sticky core (ex fresh food and energy) and services inflation uptick are likely to be BoJ watchpoints.
Fig 1: Japan CPI - Headline & Core Measures Y/Y
Source: MNI - Market News/Bloomberg
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.
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