In the wake of the CPI data earlier: Japan headline National CPI (September) 0.7% y/y (vs. expected 0.7%)

  • CPI is flat, but output gap is improving and wages have been rising for past 4 yrs
  • Expect BOJ to work to achieve price target
  • No change to stance that govt will look at several factors to determine whether it can declare an end to deflation
  • Need to confirm that there is no risk of returning to deflation

Headlines via Reuters

Well, yeah ... inflation is missing target but the economy has been on the improve. nothing new here.

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The Bank of Japan meet next week: