Japan all item CPI slowed from 0.8% yoy to 0.5% yoy in January, below expectation of 0.6% yoy. CPI core (all item less fresh food) dropped from 0.5% yoy to 0.2% yoy, below expectation of 0.3% yoy. CPI core-core (all item less fresh food and energy), dropped from -0.7% yoy to -1.1% yoy, below expectation of -0.7% yoy.
Finance Minister Shunichi Suzuki said recent prices rises were “driven mostly by increases in energy costs”, though forex moves also has had some impact. He added, “if inflation rises before improvement in job market, wage hikes kick in, that could affect consumption.”
