Japanese National Core CPI As Expected
Japanese National Core CPI As Expected
Japan National Core CPI Actual 2.3%, Expected 2.3%, Previous 2.4%
Release Explanation: CPI measures the average price of a fixed market basket of goods and services purchased by consumers, and therefore give an overall read of inflationary pressures. It is the most widely used inflation indicator of central banks, institutions, and Governments. It is used to calculate cost of living numbers for Government programs. Each regional central bank will have their own CPI target rate, and each will differ in line with the way they individually want to control the aspects of their own economies. As the most important indicator of inflation, CPI figures are closely followed by the Bank of Japan. Rising Consumer Prices may prompt the BoJ to raise interest rates in order to manage inflation and slow economic growth
Trade Desk Thoughts: Japans consumer price index was lower in September, which was expected. The core CPI came in with a reading at 2.3 percent year over year, below August’s figure of 2.4 percent. Consumer prices, excluding fresh food and energy increased 0.2 percent, in line with forecasts. Core inflation for Tokyo grew as expected by 1.5 percent year over year compared with Septembers 1.7 percent gain.
Forex Technical Reaction: The yen has fallen after this report to find support at the neutral LFB pivot point at 98.36
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