Inflation in Japan has been missing target (below it, by a long way) for many years. No transitory inflation here.


National CPI 0.1% y/y,

  • expected 0.5%, prior was 0.2%

Core measures:

National CPI excluding Fresh Food 0.1% y/y,

  • expected 0.1%, prior was 0.1%

National CPI excluding Food, Energy -0.7% y/y,

  • expected -0.6%, prior was -0.5%

Energy prices in the month rose 11.3% y/y, as you'd expect with surging oil. Compared with September's +7.4% y/y.

Japan is a huge net importer of energy.

The Bank of Japan target for core inflation is sustainable 2%, there is nothing in this data to suggest they are even getting close. Very accommodative policy will remain from the BOJ.


Tokyo area inflation comes out 3 weeks prior to the national data: Tokyo inflation data for October: Headline 0.1% y/y (vs. expected 0.5%)