MNI BRIEF: BOJ's Trimmed Mean Steady At Record 3.1% In Jan

Japan’s trimmed mean measure of underlying inflation rose 3.1% y/y in January, unchanged from December's 3.1% rise and steady at a record high pace as the pass-through of cost increases continued, data released by the Bank of Japan on Tuesday showed.

The trimmed mean comes after data released on Friday showed Japan's annual core consumer inflation rate quickened to 4.2% y/y in January, up from December’s 4.0% and the highest level since September 1981 when it rose 4.2%.

Tuesday's data showed the mode, which is the inflation rate with the highest density in the distribution, rose 1.6% y/y in January, unchanged from a 1.6% rise in December, which was a record high for a sixth consecutive month. The mode-based measure of underlying inflation is below the BOJ's 2% price target.

The BOJ maintains the view that the year-on-year rise of core CPI will fall below 2% in the middle of fiscal 2023, thereby requiring continued easy policy to support the economy and to create an environment for firms to raise wages. The board’s median forecasts for the core inflation rate in fiscal 2023 and 2024 are 1.6% and 1.8%, respectively.