Japan November inflation data. Core CPI 3.7% vs. 3.7% expected

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National CPI 3.8% y/y,

National CPI excluding Fresh Food 3.7% y/y,

  • expected 3.7%, prior was 3.6%

  • highest in 40 years for core inflation , since December of 1981

National CPI excluding Food, Energy 2.8% y/y,

(AKA core-core inflation and the closest measure to the US core CPI)

USD/JPY has popped a little on the data:

Bank of Japan Governor Kuroda has been

Bank of Japan Governor Kuroda has been insistent that the current high inflation level in Japan is transitory and will begin falling from around October in 2023. He’s also been insistent that any widening of the tolerance band around the YCC target to +/-0.5% from +/-0.25% was not under consideration since it’d basically be a rate rise. Then on Tuesday he widened the band and said it wasn’t a rate rise. Go figure.

In this release, all three measures have come in above expected and above the previous month’s reading. Will kuroda back down from his ‘transitory’ mindset?

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