The Tokyo CPI data is here, slowing but with core-core still elevated:
In that post you’ll also see the household spending, for November. This was terrible:
-1.0% m/m
- expected +0.2% & prior -0.1%
-2.9% y/y
- expected -2.3%, prior -2.5%
In that post you’ll also see my comment that:
- The underlying rate of inflation, the core-core (ex food and energy), which is closest to the US measure of core inflation, remains well above the Bank of Japan 2% target and argues for a reduction in accommodative policy.
I typed that out reluctantly at the time. It was pretty much the only thing in the data in favour of the BOJ moving to lessen accommodation. But, its what the market seems to be running with if the strength in the yen is anything to go by: