PT Solid Gold Berjangka | Tokyo Inflation Slows in Line With BOJ Cooling View

01:36 05 December in Economy, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

Ekonomi Jepang Infation Tokyo Core CPI y/y PT SGB Solid Group, SG Berjangka

Solid Gold Berjangka | The provided information discusses the recent deceleration in inflation in Tokyo and its implications, particularly in relation to the Bank of Japan’s (BOJ) perspective on monetary policy. Here’s a summary of the key points:

  1. Inflation in Tokyo Slows:
    • Inflation in Tokyo decelerated to 2.3% in November from 2.7% in October.
    • The slowdown was attributed to weaker electricity, gas, and processed food prices.
  2. National Implications:
    • Tokyo’s inflation figures are considered a leading indicator for the national trend.
    • The data suggests that the country’s overall price growth also moderated in the same period.
  3. BOJ’s View and Policy Stance:
    • The Bank of Japan has been cautious about any reduction in stimulus measures.
    • BOJ Governor Kazuo Ueda anticipates a cooling of prices, aligning with the recent slowdown.
    • The central bank may wait for additional signs, especially related to achieving its inflation target accompanied by wage gains, before considering any policy shift.
  4. Deeper Inflation Measure:
    • A deeper measure of inflation, excluding fresh food and energy prices, also decelerated to 3.6%.
    • This measure has been steadily slowing for the third consecutive month.
  5. BOJ’s Inflation Projections:
    • In October, the BOJ revised up its projection for the key inflation gauge for the current and next fiscal years to 2.8%.
    • However, the bank’s forecast for fiscal year 2025 is 1.7%, suggesting that the current levels of inflation are not expected to persist indefinitely.
  6. Market Speculation:
    • The recent slowdown in inflation may cool market speculation regarding an early policy shift by the BOJ.

Overall, the data from Tokyo indicates a moderation in inflation, supporting the BOJ’s cautious stance on stimulus reduction and prompting a wait-and-see approach for further economic indicators.