Japan PPI for May: 0.7% y/y (expected 0.7% y/y)

Japanese inflation data at business level

0.7% y/y, as expected

• expected 0.7% y/y, prior 1.3%, revised from 1.2%

-0.1% m/m

• expected 0.0% m/m, prior 0.4%, revised from 0.3%

As part of this data release is the 'Domestic final good price', which is a guide (admittedly a loose one) to the CPI. Comes in at 0.2% y/y. If you need reminding, the BOJ target for inflation is 2% y/y. Official CPI data (not this one) is showing CPI well below target. there are those thinking the next policy move from the Bank of Japan is a further easing. For example:

• JP Morgan on the BOJ - expect further easing in September
• The pieces are falling into place for further Bank of Japan easing