The Bank of Japan is introducing a new measure of CPI, which could have significant implications for monetary policy

Bloomberg reports:

  • Starting this month, the BOJ will include CPI less fresh food and energy in its monthly data release
  • CPI excluding energy and fresh food is at 0.7% y/y, according to our (Bloomberg) calculations ... much higher than a 0.1% reading for core CPI
  • If the focus remained on core CPI with readings near zero, the BOJ would have difficulty justifying staying on hold in October. With the focus shifting to the higher readings from the new index, staying on hold becomes easier to do

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I'll try to find more on this