-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Chart Packs -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI POLICY: Japan July CPI Flat On Year; Solid Goods, Services
Japan's July core CPI was unchanged on the year, slipping from the 0.4% rise seen in July, edging closer to the negative reading Bank of Japan officials foresee in the latter part of 2020.
Core-core CPI, excluding fresh food and energy items, which Bank of Japan officials watch to gauge the underlying trend, rose 0.4% y/y in July, unchanged from the 0.4% rise seen in June. Core-core CPI has now printed higher for 37 straight months.
Service prices rose 1.0% y/y in July, accelerating from 0.7%, with prices for eating out, another key BOJ focus, remaining firm, up 2.9% after a 2.9% rise in June. Prices for goods rose 0.8% y/y in July, accelerating from +0.5% in June.
BOJ officials highlighted the rise in service prices, despite being the sector hardest hit by the coronavirus pandemic. The bank has seen firms cut prices to stimulate demand during previous deflationary periods, but such action had not been noticed yet this time around.
Prices of household durable goods rose 4.0% y/y in July, accelerating from +2.5% in June, as people increased their purchases of durable goods due to government's cash distribution, which increased disposable income.
SLOWER ENERGY PRICE FALL
Prices of energy item fell 4.5% y/y in July compared to -5.3% in June and the negative contribution from energy items narrowed to -0.35 percentage point from -0.42 pp.
The positive contribution from goods prices excluding perishable foods fell to +0.11 pp from +0.12 pp in June. Prices for processed foods, accounting for 15% of the total CPI on which BOJ officials focus, rose 0.3% in July, slowing from a 0.7% gain in June.
Various sources, including high-frequency indicators, industry organizations statistics and anecdotal information from firms suggested that consumption is slowing amid the spreading of infectious disease, the BOJ views.
The BOJ remains concerned that a decrease in demand as the economy slows is likely to weigh on prices of goods and services that are sensitive to economic activity. The bank is also studying whether firms set prices to reflect if economic activity is constrained from the supply side.
The latest BOJ assessment is that Japan's core inflation rate will be in negative territory for now, mainly affected by Covid-19 fall out. The inflation rate forecast by the BOJ board members in this fiscal year is a 0.5% fall followed by a 0.3% gain in fiscal 2021.To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.