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Japan’s headline annual inflation rate fell to a 17-month low of 2.6% in December from 2.8% in November, while the core inflation print dropped to an 18-month low of 2.3%.
Food prices in Japan rose by 6.7% from a year earlier in December 2023, easing from a 7.3% increase in the previous month and marking the softest gain since October 2022, marking the 28th straight month of food inflation, with cost easing for most components.
The core consumer price index in Japan, which excludes fresh food but includes fuel costs, rose 2.3% in December 2023, slowing from a 2.5% gain in November and posting the lowest reading since June 2022. December’s figure also came in line with market expectations. Still, the core inflation print exceeded the central bank’s 2% target for the 21st consecutive month.
Japan’s December inflation numbers pointed to further signs of easing inflationary pressures, reinforcing a dovish outlook on Bank of Japan monetary policy ahead of next week’s policy meeting.
ETFs: (JEQ), (EWJ), (DXJ), (FXY).
Currency: (USD:JPY)
