Its not CPI day in Japan ... but while we wait lets take a look at the UTokyo inflation index
(Before we go on ... we had official Japan CPI a couple of weeks ago, and there's a 2 week wait for the next lot)
- The University of Tokyo measures daily consumer price information
- Bank of Japan Governor Kuroda is a big fan (maybe 'cause its showing inflation!) and does highlight the UTokyo index in speeches
So, how's it looking?
It's the red line in that graph. I guess you'd call that an uptrend, amIright?
Implications for the BOJ and yen? ... OK, I'm guessing:
- The arguments for more QQE from the BOJ are getting less convincing if inflation is moving towards target
- Which is a bullish argument for the yen over the coming new year (potential Fed tightening in December ... still in question of course ... makes short USD/JPY a less convincing play than say, EUR/JPY (for example) ... thoughts welcome)
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I've posted on the UTokyo index before:
- Japan inflation gauge showing 1.4% y/y, 'a significant change'
- University of Tokyo, Nikkei to offer daily CPI data
