Tokyo’s Core CPI Disappoints, Slips Further Below the 2% Inflation Target of BOJ

Core CPI in Tokyo is a leading indicator for core consumer inflation across Japan, growing by 0.5% in September vs. 0.7% in August and..

Tokyo's Core CPI Disappoints, Slips Further Below the 2% Inflation Target of BOJ

Core consumer prices grew at a slower pace in Tokyo during the month of September, coming in lower than expectations. Core CPI in Tokyo is a leading indicator for core consumer inflation across Japan, growing by 0.5% in September vs. 0.7% in August and 0.6% expected.

This was the slowest pace of growth for Tokyo’s core CPI since May 2018, and was driven mainly by lower energy prices. Meanwhile, core core CPI which excludes both energy as well as food prices registered a 0.6% growth in September vs. 0.7% in August. Overall, Tokyo’s CPI rose by 0.4% YoY in September, lower than the 0.6% growth YoY seen in the previous month.

The weak core CPI readings are well below the 2% inflation target set by the Bank of Japan. In its September meeting, the BOJ had kept rates and its monetary policy on hold, but had signaled a review of its decision during October’s meeting.

The news has caused a weakness in the Japanese yen, with USD/JPY trading bullish as a result. At the time of writing, this forex pair is trading at around 107.80.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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