Tokyo July CPI data comes in way above the 2% BOJ target rate. Again.

Tokyo area inflation. This is regarded as a leading indicator of nationwide inflation but its not a perfect 1 for 1 indication.

The core-core is the ‘ex. Food & Energy’, which is the closest measure to the US core inflation rate. At 4% that is very robust underlying inflation indeed.

The latest nationwide data, for May, showed all three measures of CPI above 3%, where they have been persistent. And yet the BOJ insists inflation is transitory, and the latest we’ve had from the Japanese government is they think ther same:

• when excluding one-off factors from govt utility subsidies, govt expects Japan’s consumer inflation to move around 1.5% in fiscal 2024

This article was written by Eamonn Sheridan at www.forexlive.com. Source