Japan’s next CPI data will show core inflation above target for the 17th straight month

Japan's next CPI data will show core inflation above target for the 17th straight month
  • Friday, 15 September 2023 | 3:20 GMT

The upcoming Japanese national inflation report for August is scheduled to be released at 8:30 AM Tokyo time on September 22nd, equivalent to 23:30 GMT on September 21st.

  • On the same day, the Bank of Japan will conclude its meeting.

According to a Reuters poll of analysts, core inflation is anticipated to reach 3%, surpassing the Bank of Japan’s 2% target for the 17th consecutive month.

  • The year-on-year core Consumer Price Index (CPI), which excludes the volatile fresh food component but incorporates fuel costs, is expected to show a modest deceleration compared to the 3.1% increase observed in July.

Reuters adds:

  • Reuters further reports that after reaching its peak of 4.2% in January, inflation has continued to moderate as the impact of last year’s significant spikes in fuel and raw material prices has faded. However, some analysts suggest that this deceleration has not been as pronounced as initially anticipated, primarily due to sustained increases in food prices. This could potentially result in inflation remaining above the Bank of Japan’s target for a more extended period than originally projected.

In related news earlier this week, Bank of Japan Governor Ueda indicated that there might be a possibility of tightening monetary policy if he becomes convinced that the inflationary conditions have been met. This statement comes after a span of 17 months, prompting the question of when is the point at which sufficient progress has been made?

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