JPY: All Japan core CPI to rise 1.0% y-o-y in December - Nomura

Analysts at Nomura expect the December all-Japan core CPI (ex-fresh food) to rise 1.0% y-o-y, 0.1pp stronger than the November reading.

Key Quotes

“We expect the December all-Japan core CPI (all items ex energy and food, except alcoholic beverages) to rise 0.3%, up 0.2pp from November. We think prices of food and a broad range of consumer goods contributed to higher inflation. We expect the so-called BOJ version of the all-Japan core CPI (all items ex energy and fresh food) to rise 0.5% y-o-y, a 0.2pp improvement from November.”

“We forecast the January Tokyo core CPI to rise 0.8% y-o-y, unchanged from December. As the boost from energy prices weakens, we look for inflation to temporarily stall. We expect January Tokyo core CPI to rise 0.3%, a 0.1pp improvement from December, and the BOJ version of January Tokyo core CPI to rise 0.4%, unchanged from December.”