Japan: All-Japan core CPI likely to print 0.8% for July - Nomura

Kengo Tanahashi, Research Analyst at Nomura expects the July all-Japan core CPI (all items ex fresh food) to come in at 0.8% y-o-y, the same as in June. 

Key Quotes         

“The Tokyo area core CPI for July (already announced) showed an acceleration of 0.1pp from the previous month's reading, although this reflected a large contribution from clothing & footwear and imputed rents, categories in which there are major differences in fluctuations between the Tokyo-area CPI and all-Japan CPI data.”

“We do not think the boost from these categories will be as evident in the July all-Japan CPI data as it was in the Tokyo-area CPI figures.”

“We also think the BOJ’s version of the core CPI, which excludes fresh food and energy, will come in at 0.2% y-o-y, the same as in June.”