Quotes from Societe Generale:
- We expect Japan's nationwide CPI (excluding fresh food) to have risen 2.7 pct y/y in November (from +2.9 pct y/y in October). Excluding the effects of the consumption tax (CT) hike, the pace of inflation is gradually easing (+1.5 pct y/y in April, +0.9 pct y/y in October), and is likely to be +0.7 pct y/y in November.
- The Bank of Japan (BoJ) Governor, Haruhiko Kuroda, had shown confidence that the CPI (ex fresh food and ex the influence of the CT hike) was unlikely to fall below 1 pct y/y, but this proved not to be the case. Inflation appears to be slowing down after falling below 1 pct. In November's BoJ monthly economic report, the bank's view on the inflation path was revised down from «around 1.25 pct» to «around 1 pct».
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