30 Jan 2015
Japan CPI falls, USD/JPY retreats – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team comments that the declining oil prices sent Japan’s CPI to a 9-month low, further expecting annual CPI to move back in negative territory as April’s consumption tax hike rolloff approaches.
Key Quotes
“Falling oil prices continued to weigh on inflation in Japan, sending core nationwide and Tokyo CPIs to 9- and 10-month lows respectively.”
“Analysts are speculating that eventually, lower energy costs will translate into higher spending, but that development is yet to materialize.”
“Meanwhile, Japan is approaching the consumption tax hike rolloff in April, which could send annual CPI levels back to negative territory and further dampen Abenomics objective of 2% inflation target.”
“Recall a recent Nikkei survey has already stated that some 60% of respondents do not believe Abenomics policies had any significant impact on economy.”
“Other economic datapoints in Japan were similarly troubling. Household consumption fell y/y for the 9th straight month, and Industrial Output missed consensus, which did not stop the govt from raising economic assessment on production to "gradually recovering".”
“The skeptical disconnect between soft economic data and upbeat govt sentiment is translating into a USD/JPY retreat - the pair is down some 60pips from the highs below 117.90.”
“Japan Dec national CPI Y/Y: 2.4% V 2.3%E; CPI ex fresh food Y/Y: 2.5% (9-month low) V 2.6%E”
“Japan Jan Tokyo CPI Y/Y: 2.3% V 2.2%E; CPI ex fresh food Y/Y: 2.2% (10-month low) V 2.2%E”
Key Quotes
“Falling oil prices continued to weigh on inflation in Japan, sending core nationwide and Tokyo CPIs to 9- and 10-month lows respectively.”
“Analysts are speculating that eventually, lower energy costs will translate into higher spending, but that development is yet to materialize.”
“Meanwhile, Japan is approaching the consumption tax hike rolloff in April, which could send annual CPI levels back to negative territory and further dampen Abenomics objective of 2% inflation target.”
“Recall a recent Nikkei survey has already stated that some 60% of respondents do not believe Abenomics policies had any significant impact on economy.”
“Other economic datapoints in Japan were similarly troubling. Household consumption fell y/y for the 9th straight month, and Industrial Output missed consensus, which did not stop the govt from raising economic assessment on production to "gradually recovering".”
“The skeptical disconnect between soft economic data and upbeat govt sentiment is translating into a USD/JPY retreat - the pair is down some 60pips from the highs below 117.90.”
“Japan Dec national CPI Y/Y: 2.4% V 2.3%E; CPI ex fresh food Y/Y: 2.5% (9-month low) V 2.6%E”
“Japan Jan Tokyo CPI Y/Y: 2.3% V 2.2%E; CPI ex fresh food Y/Y: 2.2% (10-month low) V 2.2%E”