Japanese inflation data, headline CPI for August: 1.3% y/y (expected 1.1%)

It is the core rate of inflation, CPI excluding food and energy, that is the BOJ target focus

National CPI y/y for August: 1.3%

• expected 1.1%, prior was 0.9%

National CPI y/y excluding Fresh Food: 0.9%

• expected 0.9%, prior was 0.8%

National CPI excluding Food, Energy y/y: 0.4% (closest to US core CPI)

• expected 0.4%, prior was 0.3%

Every month we see the core-core CPI (the bolded one above) well below its target rate. I, and I imagine everyone else, is getting sick of this being pointed out. And, you know what. so is the Japanese administration and BOJ. It is becoming an open secret that the BOJ is (in tiny baby steps) winding back its monetary stimulus despite missing target. This will continue.