Inflation data for July 2021:
National CPI excluding fresh food -0.2% y/y,
National CPI excluding food, energy -0.6% y/y,
Japan can’t even catch a high CPI reading when the whole world is overshooting. That’s a big swing and a miss on the headline and demonstrates why the yen will always be the great carry trade funder.
The Bank of Japan target for core inflation is 2% y/y and we’re a long way from there despite covid bottlenecks.