Japanese 'core' inflation (CPI excluding fresh food) was expected to fall under 2% for the first time since March 2022. It hasn't but is still the slowest pace of increase since then.

Japan cpi January 2024 2

Japan CPI ex. Fresh Food & Energy 3.5% y/y, slowest rate of increase since February 2023

  • expected 3.3%, prior 3.7%

CPI ex. Fresh Food 2.0% y/y, slowest increase since March 2022

  • expected 1.8%, prior 2.3%

Headline CPI 2.2% y/y

  • expected 1.9%, prior 2.6%


The slightly higher than expected rates of inflation will add fuel to those looking for a near term pivot to tighter policy from the Bank of Japan.

USD/JPY has dropped back under 150.55 as I post.