Japan inflation for January: Headline 4.3% vs. Expected 4.5%

Japan inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term data for January 2023:

Headline CPI Headline CPI The headline Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by consumers for a basket of goods and services. Headline CPI is a term that traders use to avoid confusion with core CPI, which strips out the volatile prices changes of food and energy. It is a widely used measure of inflation, and is calculated and published by statistical agencies, such as Statistics Canada and the Bureau of Labor Statistics (BLS) in the United States.The basket of goods The headline Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by consumers for a basket of goods and services. Headline CPI is a term that traders use to avoid confusion with core CPI, which strips out the volatile prices changes of food and energy. It is a widely used measure of inflation, and is calculated and published by statistical agencies, such as Statistics Canada and the Bureau of Labor Statistics (BLS) in the United States.The basket of goods Read this Term 4.3% y/y,

• expected 4.5%, prior was 4.0%

CPI excluding Fresh Food 4.2% y/y, highest since September 1981

• expected 4.2%, prior was 4.0%

CPI excluding Food, Energy 3.2% y/y,

• expected 3.2%, prior was 3.0% (this measure of Japanese inflation is closest to the US 'core' CPI)

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Inflation in Japan is way above the BOJ target. The 'but' is the BoJ expects this to be transitory (heard that before?), saying its due to cost-push pressures. The Bank argues that unless wages rise there will not be sustainable stable inflation around the target. The Bank expects the CPI to begin falling Back from around September or October this year.

Perhaps incoming Bank of Japan Governor Ueda will have something fresh to add when he speaks from 9.30am Tokyo time (0030 GMT and 7.30pm US Eastern time):

• Economic calendar in Asia - Friday, 24 February 2023 - Japan CPI data, BOJ's Ueda speaking

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Background to this is Tokyo area inflation for the same month released 3 weeks ago:

• Japan data - Tokyo inflation for January 2023. Headline 4.4% y/y (prior 4.0%)

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1981 eh?