Free Trial

MNI BRIEF: High Chance Core CPI Will Fall Below 2% - Ueda

(MNI) Tokyo

Bank of Japan Governor Kazuo Ueda on Tuesday told lawmakers the y/y rise in Japan's core CPI rate will fall below 2% towards the middle of this fiscal year.

He noted the key inflation rate will rise again afterward, but heightened uncertainty existed over a future price rebound.

Ueda's remarks follow a spate of higher than normal CPI prints. The Tokyo core inflation rate decelerated to 3.2% y/y rise in May from April's 3.5%, the 12th straight month above the Bank of Japan's 2% target (see: MNI BRIEF: Japan May Tokyo CPI Rise 3.2% Vs. Apr 3.5%). Ueda stated last week y/y core inflation will rise again following what is set to be a dip toward the middle of fiscal 2023 (see: MNI: BOJ's Ueda Uncertain Of H2 2023 Core Inflation Rebound).

Ueda reiterated his weak price view and pledged to continue patiently with easy policy until the Bank achieves its 2% price target, which will take time.

MNI Tokyo Bureau | +81 90-2175-0040 |
MNI Tokyo Bureau | +81 90-2175-0040 |

To read the full story


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.