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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 CPI was close to expectations. The headline rose 2.6%y/y, against 2.5% forecast and 2.8% prior. The ex fresh food measure was 2.3%y/y, in line with estimates and versus 2.5% prior. The ex fresh food and energy measure was 3.7%y/y, also in line with estimates (prior was 3.8%).
- In m/m terms, the CPI was up 0.1% after a flat Nov. Good prices rise 0.2%m/m, same as Nov, while services ticked higher to 0.1% (from flat). The core measures were up 0.2%m/m.
- Inflation positives were entertainment (+0.6%m/m), transport (+0.2%m/m) and housing (+0.1%m/m). Drags came from food (-0.2%), household good s(-0.5%m/m) and clothing (-0.6%m/m).
- In y/y terms, food (6.7%) and utilities (-13.2%) continued to see weaker y/y momentum. Other sub categories were either unchanged in y/y terms, or saw a pick up. Entertainment remains the firmest at +7.8% y/y.
- The core measure which excludes all food and energy rose to 2.8% y/y, from 2.7% in Nov (although it was flat in m/m terms, non-seasonally adjusted).
- So, whilst headline inflation continues to moderate in y/y terms, there are some pockets of strength, particularly on the services side, which has been evident for a few months now.
- Still, expectations for next week's BoJ meeting are fairly low in terms of any meaningful changes.
Fig 1: Japan CPI Y/Y Trends
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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