From Reuters and Bloomberg, recaps of this morning’s inflation figures out of Japan.

Japan’s consumer prices rose the most since 2008 in June, an early sign that the world’s third-biggest economy may be starting to shake off deflation.

I posted the data earlier, here: Japan CPI release – all the data

The ‘core’ measure of inflation in Japan is the Japan National CPI Ex-Fresh Food, which came in at +0.4% for June y/y (vs. expected at +0.3%, prior 0.0%).

It is also worth watching that same measure in the Tokyo-only figures (Tokyo CPI figures are available earlier than national CPI figures and are an indication for next month’s national figures. The Tokyo CPI Ex-Fresh Food came in at +0.3% for July, y/y, (vs. expected 0.3%, prior 0.2%).

These are positive signs for ‘Abenomics’ and the BOJ’s aggressive easing policy. Much of the price rises can be attributed the the impact of the falling yen. Expectations are for continued increases in the CPI, “Citigroup Inc. said it expects consumer prices to rise at a faster pace of around 0.5 percent in July and August from a year earlier, with the increases easing from September. ”

USD/Yen has been stable above 99.10 since the release, I posted the levels/orders that are most likely going to to contain the range until we see Europe/UK markets open here.