Tokyo inflation data for May 2022

Headline Tokyo CPI 2.4% y/y,

Tokyo CPI excluding Fresh Food 1.9% y/y,

Tokyo CPI excluding Food, Energy 0.9% y/y,

  • expected 0.9%, prior was 0.9% (this measure of Japanese  inflation  is closest to the US ‘core’ CPI)

The April nationwide CPI data will be along in about 3 weeks. This Tokyo area data is seen as a bit of a guide. The ‘excl food & energy’ is well under the BOJ target of 2%. The BOJ have said time and again they expect these readings, higher than they have been for many years (apart from sales tax rise times), to prove transitory. I suspect the BOJ will be correct on this despite other DM banks (cough … Fed …) saying the same thing having been spectacularly wrong.

yen shop 27 May 2022