🇯🇵 Japan Inflation Cools — Key Shift for Markets
Japan’s inflation trend is losing momentum, and that’s a big macro signal 👇🏽
📊 January CPI Snapshot:
• Headline CPI: 1.5% YoY (↓ from 2.4%) — slowest in 2 years
• Core CPI: 2.0% YoY — in line with expectations
• Core-core CPI: 2.6% YoY — lowest in ~1 year
💡 What This Means:
Inflation pressures are cooling faster than expected, easing stress on policymakers.
🚨 Why It Matters for Markets:
• Strengthens disinflation narrative
• Lowers urgency for aggressive BoJ tightening
• Pressures yen upside & caps JGB yield spikes
• Reshapes expectations on Bank of Japan policy normalization
🎯 Big Picture:
Japan now stands at a critical inflection point —
Will inflation stabilize near target, or cool further forcing policy delays?
Macro traders, FX desks & bond markets are watching closely.
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