Japan CPI core (all items less fresh food) dropped to -0.4% yoy in August, down from 0.0% yoy, matched expectations. It’s the lowest readings in nearly four years, matching the low seen in November 2016. All item CPI slowed to 0.2% yoy, down form 0.3% yoy. CPI core-core (all items less fresh food and energy) turned negative to -0.1% yoy, down form 0.4% yoy. Downward pressure is generally expected on prices, which might send core CPI to as low as -1.0% later this year.
Separately, according to a telephone poll by Kydo news 66.4% of the public support new Prime Minister Yoshihide Suga’s cabinet. A survey by Nikkei newspaper and TV Tokyo showed 74% support. Suga is generally expected to follow most a large part of Abenomics as his economic policies.
