Japan National CPI ticks up to 1.3% on annualized basis

Joshua Gibson FXStreet

Japan's national Consumer Price Index reported y/y inflation through August at 1.3%, coming in above the forecast 1.1% and improving on the previous reading of 0.9%.

Key highlights

Japan's national CPI lags behind the Tokyo CPI reading by several weeks, muting potential market impact of the national reading, though traders will be getting a boost of confidence from today's report as Japan's long sought-after inflation appears to be slowly working, with inflation readings finally beginning to tick upwards on a regular basis, though plenty of work still remains in order to achieve the Bank of Japan's (BoJ) 2% target range.

Core National CPI printed at expectations, coming in at 0.9% versus the previous 0.8%, and Japan's "core-core" CPI, which excludes food and energies prices, came in at 0.4% (last 0.3%), also meeting expectations.

The largest decline in the measured basket came from the furniture and household goods category, declining by -1.1%, while transportation and communication climbed by 2.0%, with medical care costs also rising by 1.1%, with goods rising by 2.1% and services rising by 0.5%.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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