Published: 2024-01-19T05:38:15.000Z
USD/JPY flows: National CPI Show Continual Moderation
FX Analyst
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National December Headline CPI y/y lower to 2.6% from 2.8%, less fresh food 2.3% from 2.5%, less fresh food and energy at 3.7% from 3.8%.
The December CPI followed the pace of moderation shown in Tokyo CPI last week. National December Headline CPI y/y came in lower at 2.6% from 2.8%, less fresh food 2.3% from 2.5%, less fresh food and energy at 3.7% from 3.8%. Ex fresh food and energy CPI remain stubborn but we are seeing headline and ex fresh food CPI moving closer to 2%. The report does not change our forecast nor the broader picture with BoJ more focused on wage.
The softer CPI sent USD/JPY higher and was met with "jawbone intervention" from Suzuki. Yet, USD/JPY still trades 0.28% higher at 148.55.