Economic calendar in Asia – Japanese CPI data & People’s Bank of China rate-setting

The Bank of Japan (BOJ) left its short-term rate unchanged yesterday, while Governor Ueda spoke later:

• ForexLive Asia-Pacific FX news wrap: Bank of Japan leaves rates unchanged, yen slumps
• ForexLive European FX news wrap: Yen tumbles on Ueda, BOE keeps rates steady (this includes Ueda’s news conference)

Today we get the latest update on Japan’s national inflation data. This has been, and remains, a focal point for BOJ monetary policy decisions, along with wage developments. And politics also – there are conflicting pressures on the BOJ to normalise policy but not to exacerbate cost of living concerns with higher rates!

October Inflation Data (the ‘prior’):

• The nationwide core Consumer Price Index (CPI), which excludes volatile fresh food prices, rose by 2.3% year-on-year. This marked the 25th consecutive month that core inflation remained above the BOJ’s 2% target, indicating persistent inflationary pressures.

• For the November data – forecast:

  • Analysts anticipate an acceleration in core consumer price inflation to 2.6%, up from 2.3% in October. This expected rise is attributed to higher rice prices and the reduction of utility subsidies, which increased energy costs.

Other Contributing Factors:

• Energy Costs: The trimming of subsidies for electricity and city gas bills has led to increased energy prices, contributing to overall inflation.

• Wage Growth: In October, base wages in Japan grew at the fastest pace in 32 years, with a 2.7% increase. This wage growth supports consumer spending, potentially sustaining inflationary trends.

Later in the session is the People’s Bank of China setting its Loan Prime Rates (LPRs). I’ll have more to come on this separately.

• This snapshot from the ForexLive economic data calendar, access it here.
• The times in the left-most column are GMT.
• The numbers in the right-most column are the ‘prior’ (previous month/quarter as the case may be) result. The number in the column next to that, where there is a number, is the consensus median expected.
• I’ve noted data for New Zealand and Australia with text as the similarity of the little flags can sometimes be confusing.

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