Tokyo area January inflation data: Headline 3.4% y/y (expected 3%, prior 3%)

Inflation holding well above the Bank of Japan 2% target rate, which will keep speculation of a near term BoJ rate hike on simmer:

You’ll note, there were jobs data out at the same time. Showing, yet again, a strong result.

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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 CPI
• It measures the change in prices of goods and services in the Tokyo metropolitan area
• Its considered a leading indicator of national CPI trends because Tokyo is the largest city in Japan and is a major economic hub
• Historically, 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

There is some conjecture of a May Bank of Japan rate hike in the works:

• BoJ Rate Hike May Move Closer: Analysis & Outlook

This article was written by Eamonn Sheridan at www.forexlive.com.