JPY: Weak underlying inflation – Nomura

By FXStreet Research Team at Nomura, notes that the all-Japan core CPI (general index excluding fresh food) was +0.0% y-y in January, in line with the consensus (Bloomberg survey median) forecast and down from +0.1% in December 2015.

Key Quotes

“The all-Japan core CPI was +0.7% y-y (consensus: +0.7%), down from +0.8% in December, weighing on the core CPI. Durable goods including TVs, room air conditioners, and refrigerators put downward pressure on the inflation rate. The core food CPI (excluding fresh food and alcoholic beverages) inflation rate in January was +2.2%, down from +2.5% in December. Estimates for the Bank of Japan’s core CPI excluding fresh food and energy put inflation based on this measure at +1.1% in January, versus +1.3% in December.

Tokyo core CPI in February above consensus forecast: The core CPI for Tokyo was -0.1% y-y in February, compared with the consensus forecast of -0.2% and in line with the January reading. The Tokyo core core CPI inflation rate in February was +0.5%, up from +0.4% in January (consensus: +0.4%), making a positive contribution to Tokyo core CPI inflation. Consumer durables price inflation remained weak, but prices of clothing picked up after falling sharply in January amid fallout from warm winter …read more

Source:: FX Street