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Wednesday, April 17, 2024
HomeFinance NewsTokyo's Inflation Slightly Lower, USD/JPY Climbs Above 146

Tokyo’s Inflation Slightly Lower, USD/JPY Climbs Above 146

The recent publication of inflation data from Japan’s capital city, Tokyo, revealed that two out of three data points experienced a slight decrease compared to the previous month. However, the core-core data remained unchanged at 4%. Despite the slight drop, all three data items remained well above the Bank of Japan’s target of 2% inflation.

In previous discussions, it was highlighted that the Bank of Japan has been persistently stating its expectation for inflation in the country to decline soon. It was also mentioned that forecasters from the bank anticipate a decline to occur around September or October. The recently released Tokyo data seems to support this assertion. The national inflation data for August will be published in approximately three weeks, whereas the Tokyo data is collected and compiled at a much faster rate.

In response to the inflation data, the USD/JPY exchange rate showed a slight increase. If inflation in Japan is indeed temporary, as stated by the Bank of Japan, it indicates that their loose monetary policy will remain in place for a while longer. This development has sparked discussions among ForexLive’s audience, with the possibility of the USD/JPY reaching 150 being a topic of interest.

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