Japan data - Tokyo headline CPI y/y for December: 0.3% y/y (expected 0.5%)

CPI for the Tokyo area in December is 0.3% y/y

• is 0.5%, prior was 0.8%

Tokyo CPI excluding Fresh Food y/y for December 0.9%

• expected 0.9%, prior was 1.0%

Tokyo CPI excluding Food, Energy y/y for December 0.6%

• expected 0.6%, prior was 0.6%

Tokyo area inflation data is released three weeks prior to the national CPI. The Tokyo CPI is often used as a guide to the national figure, its not a perfect guide but a rule of thumb only. As you can see from this the headline is a big miss, but the one to watch is the 'ex food and energy', that's the closest to the US core CPI measure. Its in as expected, unchanged from November … and way, way below the BOJ's 2% target.

You'll also probably notice the yen is doing nothing.

So, inflation still way below target, makes any tightening from the BOJ very unlikely any time soon.