Japan Macro Updates

The One Stop Portal for Japan Macroeconomic Data. Simplified and Summarized!

We simplify and summarize key data so that you don’t have to spend hours reading confusing and long media releases. Read key economic releases and major events here in under 2 minutes. And we will explain the key takeaway for you. Stay informed and form a robust view on macroeconomic matters to aid your successful investment decisions

18th Jan 2024

Japan CPI

Key takeaway: The National Core CPI for Japan, which excludes fresh food prices but includes energy costs, decreased from 2.5% in November to 2.3% in December. The Index has been above the 2% BoJ target since mid 2022 and still remains a key factor in the consideration for future path of monetary policy in Japan. Even though the index has been higher than the target for a long time, the BoJ also takes note of the fact that it has fallen substantially from its 2023 high of 3.1%. The market expects the BoJ to reverse it easy monetary policy sometime this year. However rapidly falling inflation globally and in Japan makes that decision path a bit uncertain. Headline CPI reduced from 2.8% in November to 2.6% in December. Finally, “core-core CPI” which excludes both fresh food and energy costs, stood at 3.7% in December – also a drop from the 3.8% seen in November. The “core-core’ index is often seen as more reflective of the inflationary pressures in the economy and the tru likelihood of a wage-price inflation cycle. All eyes are now on the outcome of wage price negotiations in Japan in 2024.