🇯🇵❗️Cable FX Macro Weekly Note: Japan December Consumer Prices

**As seen in Risk In The Week report 01/12/24, subscribe at cablefxm.co.uk/reports

Japan consumer prices rose 2.8% Y/y in November, this was in line with estimates and slower than the prior 3.3%. Headline consumer prices are now expected to rise 2.6% in December, this will be the slowest pace since July 2022. The figure excluding fresh food and energy eased to 2.5% Y/y from 2.9%, the metric came in line with economists’ expectations. November food prices slowed to 7.30% Y/y, the pullback has taken the component to the lowest level since January 2023.

Analysts at MUFG said that the BoJ will need to see stronger wage growth to become confident about sustained higher inflation and a shift in monetary policy. The most recent wage data showed nominal earnings rising by just 0.2% Y/y, missing expectations and dropping from the prior 1.5%. MUFG has now pushed their BoJ move forecast from January to April, they said the central bank is still set to increase rates this year.