Japan December PPI +0.5% m/m (expected +0.3%) and +10.2% y/y (expected +9.5%)

Japan December PPI (aka Domestic corporate goods price index - in a nutshell its inflation Read this Term at the wholesale level)

+0.5% m/m

• expected +0.3%, prior 0.6%

+10.2% y/y

• expected +9.5%, prior +9.3%

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This is 'consumer' price inflation, but it does have an impact on higher prices passed through at the consumer level. Ferocious gains over the past couple of years. Graphs from the Bank of Japan's report on PPI today:

ICYMI, the Bank of Japan meeting begins tomorrow (Tuesday, 17 January 2023):

• Ahead of its monetary policy meeting beginning on Tuesday the BOJ to buy JGBs today
• TD say still plenty of room for yen gains, see as low as 120 by the end of March
• Bank of Japan preview - "may be on the verge of its biggest policy change in decades"

And, while awaiting the BOJ< PBOC up today:

• PBOC MLF liquidity injection today - unchanged rate expected (but some expect a small cut)