๐ฏ๐ต JAPAN CPI UPDATE โ DEC 2025 ๐
Japanโs inflation cooled notably at year-end, but price pressures remain above target.
Latest CPI Data (YoY):
โข National Core CPI: 2.4% (โ from 3.0% in Nov)
โข Headline CPI: ~2.7%โ2.9% range (cooling trend)
โข Tokyo Core CPI: 2.3% (โ from 2.8% in Nov)
Why Tokyo matters:
Tokyo CPI is a leading indicator โ the slowdown signals easing nationwide inflation momentum.
Policy Context:
โข BOJ policy rate: 0.75%
โข Inflation still above the 2% target
โข BOJ keeps a hawkish bias, open to further hikes if growth + wages stay supportive
Market takeaway:
Inflation is cooling, but not collapsing โ keeping JPY volatility and rate expectations in focus.
๐ Slower inflation
โ ๏ธ Policy tightening still on the table
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