Japan Producer Price Index is inflation at a business-to-business level.

The PPI fell both m/m and y/y in March, more on this in just a moment.

As part of the PPI release from the Bank of Japan is a data point that loosely correlates with consumer level inflation (CPI). This is the 'domestic final goods prices' index, which fell 1.0% y/y. The Bank of Japan will not be happy with this (while their immediate focus is on monetary policy to help manage the economic fallout from the coronavirus disaster currently unfolding globally, this falling consumer inflation indicator will add to BOJ policy-maker misery).

Back to the PPI:

-0.9% m/m

  • expected -0.6% m/m, prior -0.4%

-0.4% y/y

  • expected -0.1% y/y, prior +0.8%

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Also published from Japan was bank lending for March:

  • +2% y/y (including trust lending, prior +2.1%
  • +2.2% (excluding, prior +2.2% also)

Scanning across FX rates (Japanese markets are trading today, albeit with very diminished liquidity due to holidays elsewhere in major FX markets in Asia - here is a guide to which markets are closed and open) rates are little changed against the USD since the US close.

  • AUD, CAD each around 20 points or so down
  • NZD down around 10 points
  • USD/JPY ticked above 108.55 but is circa 108.43 as I post.