Japan CPI data for February: headline CPI 0.4% y/y (expected 0.5%)

The focus is elsewhere, not on data

National CPI 0.4% y/y,

• expected 0.5%, prior was 0.7%

National CPI 0.6% y/y excluding Fresh Food,

• expected 0.6%, prior was 0.8%

National CPI excluding Food, Energy 0.6% y/y,

• expected 0.7%, prior was 0.8%

I noted earlier that CPI numbers in Japan (y/y) have been boosted by the sales tax hike back in October 2019. The results we are seeing are far belwo the BOJ target but if you consider the tax impact is built in, they are even further from target.

The more important news of out Japan this morning is that the government is considering an economic package worth more than 30 trillion yen