Tokyo February headline CPI +2.9% y/y (2.7% expected) ...Middle East

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Tokyo February headline CPI +2.9% y/y (2.7% expected)

All three of the measures have come in above expected, and all of them above (or equal to in the case of the headline) the February reading.

To round it out, all three are also above the Bank of Japan 2% target.

    At the margin you'd think that this is positive for a Bank of Japan rate hike and also for the yen.

    Tokyo CPI +2.9% y/y

    expected 2.7%, prior +2.9%

    CPI excluding fresh food 2.4% y/y

    expected 2.2%, prior 2.2%

    CPY excluding fresh food & energy 2.2% y/y

    expected 2.0%, prior 1.9%

    Here is the ex-fresh food graph:

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    As background to the Tokyo area inflation data:

    National-level CPI data for this month will follow in about three weeks, it takes longer to gather and collate the national data.Tokyo CPI is a sub-index of the national CPIIt measures the change in prices of goods and services in the Tokyo metropolitan areaIts considered a leading indicator of national CPI trends because Tokyo is the largest city in Japan and is a major economic hubHistorically, Tokyo CPI data has been just slightly higher than national Japan CPI data. The cost of living in Tokyo is a touch higher than in most other parts of Japan. Higher rents, for example This article was written by Eamonn Sheridan at www.forexlive.com.

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