As reported by Reuters, Japan’s leading inflation indicator, the Tokyo CPI report, came in stubbornly steady near 1% for the year into October, leaving Japanese inflation far off of the central bank’s targets as the BoJ still carries a burgeoning balance sheet.
Key quotes
“Tokyo’s core consumer price inflation was unchanged in October from the previous month, government data showed on Friday, offering little encouragement for Japan’s central bank as it struggles to reach its ambitious 2 percent inflation target.
The so-called core-core CPI, which strips away the effect of both energy and fresh food prices, rose 0.6 percent in October after increasing 0.7 percent in September.
Inflation has remained well below the BOJ’s 2 percent target despite Japan’s steady economic recovery, forcing the BOJ to maintain a massive stimulus despite the rising costs such as the hit to bank profits from years of near-zero interest rates.”
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