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27 Feb 2015
Japan's CPI's lower than expected - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank noted that in Japan, today’s CPI data were weaker than expected despite QE ad nauseam, the sharp fall in JPY, and a big sales tax hike.
Key Quotes:
"Headline CPI was 2.5% YoY as expected, but excluding food they were up just 2.2%, not 2.3% as expected. Once last April’s base effects kick in it will be Irashaimase to deflation once again – in which case the BOJ are locked in to a promise to change ad nauseam to ad ridiculum (or to change their target, as hinted earlier in the week), especially as retail sales also fell 1.3% MoM and unemployment rose from 3.4% to 3.6% (only industrial production rose 4.0% MoM, and that was still down 2.6% YoY regardless)."
Key Quotes:
"Headline CPI was 2.5% YoY as expected, but excluding food they were up just 2.2%, not 2.3% as expected. Once last April’s base effects kick in it will be Irashaimase to deflation once again – in which case the BOJ are locked in to a promise to change ad nauseam to ad ridiculum (or to change their target, as hinted earlier in the week), especially as retail sales also fell 1.3% MoM and unemployment rose from 3.4% to 3.6% (only industrial production rose 4.0% MoM, and that was still down 2.6% YoY regardless)."