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

26th Jan 2024

Tokyo CPI

Key takeaway: Tokyo inflation fell sharply in January starting 2024 with a bang. Core CPI, which excludes fresh food, declined from 2.1% in December to 1.6% in January. This was substantially lower than the 1.9% consensus expectation and most importantly below the BoJ target of 2% inflation. There are 2 key points to understand. First, Tokyo CPI data is released ahead of the National CPI number. Second, it  is generally thought of to be adequately reflective of inflation in Japan. Hence it serves as bit of a leading indicator. There is strong anticipation that we will soon see a policy pivot from the Bank of Japan as they draw curtains on negative interest rates and Yield Curve Control. However, sharply falling inflation raises some questions over how soon will that materialize. Headline CPI also moderated from 2.4% to 1.6%. Finally, CPI ex food and energy – which is often called “Core-Core CPI” also fell to 3.1% in January from 3.5% in December 2023

  • Tokyo Core CPI decreased 0.2% m-o-m and increased 1.6 % y-o-y (expected +1.9%)

8th Jan 2024

Key takeaway: Tokyo inflation fell in line with expectations in December moderating from 2.7% in November to 2.4% in December. The more important Core CPI measure which excludes Fresh Food also moderated from 2.3% to 2.1%. Month over month core CPI increased 0.1% from November. Tokyo CPI is released ahead of the nation wide data and generally expected to track national numbers. Inflation has be generally been moderating in Japan in line with other global trends on the back of improving supply chains and falling energy prices. Japan inflation is closely watched by fixed income and currency markets worldwide given its impact on the future path of Japanese monetary policy.