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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.
JAPAN DATA
Japan Dec Tokyo CPI figures were close to expectations. Headline CPI printed at 2.4%y/y (against a 2.5% forecast, and 2.7% prior). The ex fresh food category was 2.1% y/y in line with forecasts (2.3% prior). The ex fresh food, energy index rose 3.5% y/y, also in line with expectations (prior was 3.6%).
- In m/m terms, headline inflation was flat (versus -0.2% in Nov). The core measures were both +0.2% m/m, with goods +0.3% and services inflation flat. The measure which excludes all food and energy (non seasonally adjusted) rose 0.1% m/m.
- In terms of the sub categories we had drags from food (-0.4%m/m) and utilities (-0.3%m/m), but entertainment +0.7% m/m and clothing +0.2% m/m were positive offsets.
- In y/y terms, the biggest drag remained from utilities, -17.2% y/y. Food y/y inflation also eased back to 6.6%. Most other categories saw either upticks in y/y momentum or steady outcomes.
- Overall, the data continues to show moderation in inflation pressures, albeit with core's much more gradual than the headline, see the chart below. Base effects will be less supportive for further headline falls as we progress through 2024.
- Other data showed household spending fell -2.9% y/y in Nov, versus -2.3% expected.
- Note we get Nov labor nominal and real earnings data tomorrow.
Fig 1: Tokyo CPI Measures Y/Y
Source: MNI - Market News/Bloomberg
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.
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