Japanese core CPI expected at 0.2% - Nomura

FXStreet (Barcelona) - David Fritz, Research Analyst at Nomura, previews the Japanese CPI data to be released ahead in the week.

Key Quotes

“Japanese CPI data will be released overnight on Friday morning. This includes the national CPI for April and the May inflation for Tokyo.”

“Our Japanese economics team has changed expectations for Japanese monetary policy because of the weak pickup in inflation (they note the BoJ has moved expectations of achieving the 2% inflation target to FY16H1 from FY15). Weak inflation numbers could shift expectations again.”

“Our expectations for core inflation are 0.2% (down 0.1% when excluding the 0.3% residual impact in April from the consumption tax hike). This is in line with market expectations. Note: May will not require an adjustment for the consumption tax hike.”

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