Japan National CPI for May and Tokyo CPI for June:

National CPI y/y for May, 0.5%

  • expected 0.4%, prior was 0.6%

National CPI y/y excluding Fresh Food, 0.1%

  • expected 0.0%, prior was 0.3% (this is the 'core' rate watched most by the BOJ)

National CPI excluding Food, Energy y/y, 0.4% (this referred to as the 'core-core' rate)

  • expected 0.4%, prior was 0.4%

Tokyo CPI y/y for June 0.3%

  • expected 0.5%, prior was 0.5%

Tokyo CPI excluding Fresh Food y/y, 0.1%

  • expected 0.1%, prior was 0.2%

Tokyo CPI excluding Food, Energy y/y, 0.2%

  • expected 0.1%, prior was 0.1%

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  • The latest from the BOJ is that they are still on hold ... despite the lack of inflation as evidenced by today's data
  • The BOJ goal is stable 2% inflation ... they are still a long, long way off this
  • The argument is that inflation is weak due to the fall in oil prices, which the Bank of Japan views as a temporary phenomenon (& the price has stabilized and bounced somewhat since its lows)
  • On the plus side, the bank will be happy to see the jump in household spending that was reported at the same time as the CPI data

As expected, little yen response: