Market Updates: BOJ Core CPI Slips to 0.5%, Misses Forecast

The Bank of Japan just released the Inflation numbers for the Japanese economy. Basically, the CPI (Consumer Price Index) accounts for a significant majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.

The inflation figures slipped again from 0.6% to 0.5%, adding to sentiments that the Bank of Japan will keep the interest rates unchanged. The USD/JPY remains neutral at $110.391, perhaps due to a lack of volatility in the market.