🇯🇵 JAPAN INFLATION UPDATE
Japan’s inflation rate eased to 1.4% YoY in April, moving further below the BoJ’s 2% target.
📊 Meanwhile:
• Japan M2 money supply growth: 2.31% YoY
• Estimated “Golden Growth Rate” for stable 2% inflation: ~6%
🧠 Macro takeaway:
Slower money supply growth may help explain why inflation pressures are cooling.
This supports the argument that:
💰 Money supply growth remains a major long-term driver of inflation trends.
⚠️ Market implications:
• Pressure on the Bank of Japan to stay accommodative
• Yen volatility remains in focus
• Global bond markets watching closely