Japan’s Core CPI Slides to an Over Two-Year Low

Japan's core CPI declined to a two-year low during the month of August, further below the 2% target set by the BOJ. Nationwide core CPI grew

USD/JPY

Japan’s core CPI declined to a two-year low during the month of August, further below the 2% target set by the BOJ. According to data released by the Statistics Bureau, nationwide core CPI grew by 0.5% YoY in August, slipping from the 0.6% growth seen in July.

Core CPI growth was the slowest seen since July 2017, when the reading had hit 0.5%. A weakening in global economic growth, strengthening of the Japanese yen over an increased safe haven appeal, and weak crude oil prices had driven the CPI lower in August. In addition, domestic demand remained anemic, further contributing to the slide in consumer inflation.

The Japanese yen remains largely unaffected on the release of this news, with USD/JPY trading at around 107.87 as the weakness in the US dollar drives the moves in this forex pair for now.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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