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MNI GLOBAL WEEK AHEAD - Eurozone Flash Inflation, US PCE Highlight

In a quiet week, FOMC Minutes and flash PMIs will likely garner the most cross-market attention.

TUESDAY - Japan CPI

Next week's CPI is expected to show a further downstep in y/y headline and core inflation momentum. The consensus looks for a 1.9% y/y headline outcome (prior 2.6%), while ex fresh food is expected to print the same (prior 2.3%). The metric which excludes fresh food and energy is projected at 3.3% (from 3.7% prior). Still, for the headline January 2023 was the peak in terms of y/y momentum, hence base effects are a factor. The BoJ is more focused on the current round of wage negotiations to help achieve sustainable inflation closer to its target. Hence we may not see a huge reaction to the upcoming CPI print.

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TUESDAY - Japan CPI

Next week's CPI is expected to show a further downstep in y/y headline and core inflation momentum. The consensus looks for a 1.9% y/y headline outcome (prior 2.6%), while ex fresh food is expected to print the same (prior 2.3%). The metric which excludes fresh food and energy is projected at 3.3% (from 3.7% prior). Still, for the headline January 2023 was the peak in terms of y/y momentum, hence base effects are a factor. The BoJ is more focused on the current round of wage negotiations to help achieve sustainable inflation closer to its target. Hence we may not see a huge reaction to the upcoming CPI print.

Keep reading...Show less