Friday, September 25, 2015

JPY: Inflation dips into negative territory, first time since Apr 2013 - TDS

FXStreet (Delhi) – Prashant Newnaha, Rates Strategist at TD Securities, notes that the BoJ’s preferred inflation measure, which excludes fresh food, dripped from 0.0%/yr in July to –0.1%/yr in August, the first negative reading since April 2013.

Key Quotes

“The drop was mostly driven by falling gasoline prices. Today’s release keeps hopes alive that the BoJ could ease policy further by year end, but a meeting between BoJ’s Kuroda and PM Abe today suggests a chance of easing at October is low.”

“Kuroda said that Japan’s inflation trend is solid (if you exclude food and energy, CPI rose 1.1% in Aug), that there were no detailed talks on CPI with Abe and no further requests from the PM.”
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