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Japan CPIs still depressed, is a 2% target really achievable?

FXstreet.com (Barcelona) - Japanese CPI figures came softer-than-expected. Headline yearly readings nationwide came at -0.9% vs 0.8% expected and 0.7% previous, while in the Tokyo region price levels stood at -0.7% vs -1.0% previous.

The rest of the CPIs readings came also slightly below expectations, which suggests the country has an arduous road ahead to meet its promised 2% inflation target.

While it is premature to jump into conclusions, since the aggressive new monetary policies by the BoJ still have to run its effects through the economic, it is worrisome nonetheless to see price more negative than the previous month.

If these kind of depressed price levels were to persist into May/June, the market will start to ask more questions and more disbelief will potentially grow on the success of the 2% inflation target in the near future.

Japan Apr Tokyo CPI ex Food, Energy (YoY) rises to -0.7% vs -0.8%

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