Japan August core CPI +3.0% vs +3.0% expected | Forexlive

• Prior CPI 2.8%
• Overall nationwide CPI +3.0% vs +3.0% prior
• Ex fresh food and energy +1.8% vs +1.6% prior
• CPI m/m vs +0.4% prior
• CPI ex-food and energy vs +0.2% prior

Core CPI is at the highest since 2014 in y/y terms but it’s the highest since 1991 excluding sales tax changes. It’s still hard to believe that it’s not even higher given commodity prices and the plunge in the yen.

There’s no sign of the BOJ cracking yet but next week’s meeting will certainly be intriguing.

USD/JPY is trading at 105.18 with 10-year JGBs yielding 0.25% compared to Treasuries at 4.23%.

/JPY