HomeFinance NewsTokyo Inflation Slightly Lower, USD/JPY Rebounds Above 146

Tokyo Inflation Slightly Lower, USD/JPY Rebounds Above 146

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The recent release of inflation data from Japan’s capital, Tokyo, revealed that two out of three indicators dropped slightly compared to the previous month, while the core-core indicator remained unchanged at 4%. Despite the slight decrease, all three indicators remain significantly above the Bank of Japan’s target of 2%. This aligns with the central bank’s prediction that inflation in Japan will start to decline in the near future, with forecasters pointing to September or October as the likely period for the decline to begin. The publication of national inflation data for August is expected in approximately three weeks, while the Tokyo data is collected and collated more quickly.

The slight increase in the USD/JPY exchange rate suggests that if inflation in Japan turns out to be transitory, as stated by the Bank of Japan, their accommodative monetary policy is likely to continue for an extended period. This news may prompt analysts to speculate about the possibility of the USD/JPY exchange rate reaching the 150 mark. It would be interesting to hear the opinions of the forex community on this matter.

In conclusion, Tokyo’s inflation data indicates that while there was a slight drop in two out of three indicators, all three remain well above the Bank of Japan’s target of 2%. This supports the bank’s assertion that inflation in Japan is expected to decrease soon, with September or October being the likely timeframe. The quick collection and collation of Tokyo data contrast with the upcoming release of national inflation data for August in around three weeks. The USD/JPY exchange rate has slightly increased, indicating that if Japan’s inflation is temporary, the Bank of Japan’s loose monetary policy will likely persist. This development has sparked discussions among forex analysts about the possibility of the USD/JPY exchange rate reaching 150.

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