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

19th Apr 2024

Japan CPI

Key takeaway: The National Core CPI for Japan, which excludes fresh food prices but includes energy costs, decreased slightly from 2.8% in February to 2.6% in March. This comes on the back of a sharp rise in the Core CPI seen in the last month of February when Core CPI had shot up from 2.0% in January to 2.8%. The key point to note is that even with the slight fall this month, the index remains above 2.0% and has been above that key level for over 2 years. This still remains a key factor in the consideration for future path of monetary policy in Japan. With inflation stickier than expected, the BoJ made its momentous move in monetary policy last month by raising rates from minus 0.1% to 0-0.1% and by ending yield curve control. However, there are still no clear indications on where monetary policy will proceed to from here. The outcome will be data dependent on Japan and Tokyo inflation as well as the future path of US monetary policy and US inflation. While the BoJ is likely to hold rates steady at the April meeting it has also been closely watching the rapidly depreciating Japanese Yen which put further upward pressure on headline inflation in Japan. Headline CPI also decreased slightly from 2.8% in February to 2.7% in March. Finally, “core-core CPI” which excludes both fresh food and energy costs, stood at 2.9% in March – below the 3% level for the first time since November 2022. The “core-core’ index is often seen as more reflective of the inflationary pressures in the economy and the true likelihood of a wage-price inflation cycle. 

22nd Mar 2024

Key takeaway: The National Core CPI for Japan, which excludes fresh food prices but includes energy costs, increased sharply from 2.0% in January to 2.8% in February 2024. 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. The higher reading was also in line with the recently released Tokyo area inflation numbers which generally provide a early indication of the national CPI numbers. Tokyo inflation in February had also registered a sharp increase from 1.8% to 2.5% in February. With inflation stickier than expected, the BoJ made its momentous move in monetary policy this week by raising rates from minus 0.1% to 0-0.1% and by ending yield curve control. However, there are still no clear indications on where monetary policy will proceed to from here. The outcome will be data dependent on Japan and Tokyo inflation as well as the future path of US monetary policy. Headline CPI increased from 2.2% in January to 2.5% in February. Finally, “core-core CPI” which excludes both fresh food and energy costs, stood at 3.1% in February – lower than the 3.5% recorded last month. The “core-core’ index is often seen as more reflective of the inflationary pressures in the economy and the true likelihood of a wage-price inflation cycle. The last point to also bear in mind has been the sizeable increase in wages for 2024 as an outcome of the ongoing wage negotiations with labour unions across Japan. 

26th Feb 2024

Key takeaway: The National Core CPI for Japan, which excludes fresh food prices but includes energy costs, decreased from 2.3% in December to 2.0% in January 2024. 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 2.6% in December to 2.2% in January. Finally, “core-core CPI” which excludes both fresh food and energy costs, stood at 3.5% in January – also a drop from the 3.8% seen in November and 3.7% seen in December 2023. The “core-core’ index is often seen as more reflective of the inflationary pressures in the economy and the true likelihood of a wage-price inflation cycle. All eyes are now on the outcome of wage price negotiations in Japan in 2024. Early signs from some of the companies that have concluded wage negotiations show a sizeable jump in wages for workers (5% to 7.0%)

18th Jan 2024

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.  

Official Statistics of Japan

e-Stat is a portal site for Japanese Government Statistics.