Japan’s Tokyo CPI Matches Expectations in August, While July National Inflation Surpassed Forecasts

• Tokyo CPI for August at 1.9% YoY, meeting expectations.
• July national CPI rose 1.9% YoY, exceeding forecasts.
• July unemployment rate improved to 2.4%.
• Japanese Yen showed minimal market reaction.

Japan’s Tokyo Consumer Price Index (CPI) for August showed the headline annual inflation rate at 1.9%, aligning with market expectations. The core CPI, excluding fresh food, also matched forecasts at 1.8% year-over-year, while the “core-core” measure, excluding both fresh food and energy, registered 2.0%. This follows the national CPI data for July, which saw overall inflation climb 1.9% annually, surpassing the anticipated 1.8% and an upward revision from the previous month’s 1.6%. Additionally, the July unemployment rate in Japan improved to 2.4%, better than the 2.5% expected. Despite these inflation figures, the Japanese Yen (JPY) exhibited minimal immediate reaction, with the USD/JPY pair showing only a slight movement.