We have just got the inflation in Japan (for January), and on Thursday we will get the most important for the markets PCE inflation in the USA (also for January). On Friday, flash inflation for February in the euro zone. But a day earlier we will also get the flash inflation in France, Germany and Spain (for February).
Inflation in Japan for January (for the entire country) turned out to be hotter than expected (Figure 1):
Headline CPI in January was 2.10% (expected 1.9%),
Core inflation (ex-fresh food and energy) 3.52% (expected 3.3%)
Core inflation (ex-fresh food) 2.01% (expected 1.8%).
After the publication, the yen strengthened slightly against the dollar (but only by some 0.1% immediately after the publication), which can be considered a lack of reaction. Maybe because the main trend in inflation is relatively clear - see Figure 2.
The 3-month annualized inflation rate is:
for headline CPI: -0.74%
for core CPI: 0.00%
for core (only less fresh food): 0.00%
Figure 3 shows the above 3 series from 2006 (YoY).
Comments