Japan's Tokyo CPI annual inflation eases back to 2.6% from 3.3%

Japan's latest Tokyo Consumer Price Index (CPI) print shows price growth eased back again in November, with the headline CPI print receding to 2.6% for the annualized period into November compared to October's YoY print of 3.3%.

November's annualized Tokyo Core CPI (CPI less Fresh Food price volatility) also declined slightly faster than markets expected, printing at 2.3% versus the median market forecast of 2.4%. Tokyo's Core CPI last printed at 2.7% for the year into October.

With inflation pressures continuing to ease, investors will be keeping a keen eye on the Bank of Japan (BoJ), which is currently firmly-embedded within its hypereasy monetary policy stance, with Japan's central bank increasingly concerned that inflation will drop below the BoJ's target rate of 2% sometime in 2024.

Market Reaction

The USD/JPY is stuck in place near 147.20, mostly flat in the early Tuesday market session. The Japanese Yen (JPY) is down six-tenths of a percent against the US Dollar (USD) on the week.

About Tokyo Consumer Price Index

The Services Purchasing Managers Index (PMI), released on a monthly basis by Judo Bank and S&P Global, is a leading indicator gauging business activity in Australia’s services sector. The data is derived from surveys of senior executives at private-sector companies from the services sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), employment and inflation. A reading above 50 indicates that the services economy is generally expanding, a bullish sign for the Australian Dollar (AUD). Meanwhile, a reading below 50 signals that activity among service providers is generally declining, which is seen as bearish for AUD.