JPY: Inflation in the Tokyo area continues to cool down – Commerzbank
The inflation figures for the Greater Tokyo Area, which usually provide a reliable indication of the figures for Japan as a whole, were published this morning and were in line with expectations, Commerzbank's FX analyst Michael Pfister notes.
Latest figures seem to be pointing in the right direction
"As expected, both the headline rate and the rate excluding fresh food were significantly lower year-on-year, while the rate excluding fresh food and energy was slightly lower. Seasonally adjusted new price pressure (month-on-month) was also low again."
"After many months of food prices fuelling inflationary pressure, this is cooling significantly. Over the last three months, prices have risen by only 0.1% in total, which is well below the annualised inflation target of 2%."
"In short, after many months of elevated inflation, the latest figures seem to be pointing in the right direction. This should further dampen market participants' expectations of interest rate hikes and limit hopes of strong JPY appreciation."
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FXStreet Insights Team
FXStreet
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