USD/JPY flows: Headline CPI Cushioned by Stimulus

The Japan March Headline CPI came in at 1.5% y/y, only slightly higher than February as the energy stimulus cushion the energy spike. Core CPI arrived at 1.8% y/y while Core-core at 2.4% y/y. Only core-core is above target range but is showing signs of moderation. However, it does not truly reflect the impact of energy shock. It takes time for business to feel the burn through of stimulus, before passing it to consumers.

USD/JPY is trading 0.07% higher at 159.76.