Free Trial

(U2) More Stable But Still Fragile


Trend Structure Remains Bullish


Cautious Risk Appetite Gains Momentum


Key Support Still Exposed


Late Equity Roundup: 2W Highs

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 Access
MNI (Sydney)

The decline in the Japan's core consumer price index slowed in March due to a smaller negative contribution from energy items and came as no surprise to Bank of Japan officials who expected the impact after past falls in crude oil prices, MNI understands.

Bank officials expect the negative contribution from energy items to turn positive in or after April, easing downward pressure from lower mobile phone fees on CPI after April.

The drop of mobile phone fees will increase people's real purchasing power, stimulating private consumption.

Bank officials maintain the view that the inflation rate is expected to be in negative territory for the time being.

They do not expect the weaker consumer price index to affect inflation expectations but are keeping a close eye on the expected inflation rate.

The nationwide core CPI fell 0.1% y/y in March for the eighth straight month after falling 0.4% in February. The smaller drop was expected as the Tokyo March CPI, a leading indicator of nationwide CPI, slowed to -0.1% from -0.3% in February.


January core-core CPI, excluding fresh food and energy items - the BOJ's preferred gauge of the underlying trend – rose 0.3% y/y in March after rising 0.2% in February.

Overall accommodation prices were unchanged y/y in March, narrowing from -5.1% in February. The contribution from accommodation turned to +0.06 percentage point from -0.06 pp in February.

Service prices rose 0.1% y/y in March after rising 0.1% in February. Prices for eating out, another key BOJ focus, rose 0.2% y/y in March following +0.3% in February, indicating corporate price cuts hadn't expanded.

Prices for processed foods, accounting for 15% of the total CPI on which BOJ officials focus and which are sensitive to the economic climate, were unchanged y/y in March, up from a -0.1% fall in February.

Prices for household durable goods rose 4.4% y/y in March, accelerating from +3.1% in February and reflected the continued firm demand for goods.

MNI Sydney Bureau | +61-405-322-399 |
MNI Sydney Bureau | +61-405-322-399 |

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.