Japan CPI core (all merchandise ex-fresh meals) dropped additional to -1.0% yoy in December, down from -0.2% yoy, however was above expectation of -1.1% yoy. That’s nonetheless the most important annual decline in core inflation since September 2010. Headline CPI (all objects) dropped to -1.2% yoy, down from -0.9% yoy. CPI core-core (all merchandise ex-fresh meals and power) dropped to -0.4% yoy, down from -0.3% yoy.
“I don’t assume the danger of Japan sliding again into deflation is excessive,” BOJ Governor Haruhiko Kuroda insisted yesterday. “However potential progress could also be falling so we have to take a look at the affect (on costs) fastidiously.”
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