Japan inflation: Minor uptick in inflation, BoJ QE bets off short term?

FXStreet (Bali) – There has been a minor uptick in Japan’s inflation numbers, especially in the national CPI for October and the early Tokyo CPI data for November, an outcome that should reassurance market participants of the slim chances of BoJ’s Governor Kuroda announcing further QE in the near future.

Japan cpi ex-fresh food & energy (yoy) oct came in at 0.7% (exp 0.8% prev 0.9%), which is the only disappointment, while cpi ex-fresh food (yoy) jul was -0.1% (prev -0.1%), and the cpi (yoy) stood at 0.3% (prev 0%). In Tokyo, cpi ex-fresh food & energy (yoy) nov was 0% (prev -0.2%), cpi ex-fresh food (yoy) nov came in at 0.6% (prev 0.4%), while cpi (yoy) was 0.2% (prev 0.1%).

Overall, the figures are not as disappointing as in recent months, although they remain well off the BOJ’s 2% inflation target mandate. While Japan PM Abe has recognized the difficulty about hitting BOJ inflation target deadline due to the relentless oil price declines, the figures nonetheless show that minor progress is seen.

There has been a minor uptick in Japan’s inflation numbers, especially in the national CPI for October and the early Tokyo CPI data for November, an outcome that should reassurance market participants of the slim chances of BoJ’s Governor Kuroda announcing further QE in the near future.

(Market News Provided by FXstreet)