Kuroda at G7 Said Bank of Japan Will Continue with Powerful Easing with CPI Unsustainable

The Bank of Japan chief Kuroda speaking at the G7 said BOJ will patiently continue with powerful easing announcing no change to monetary policy. While the major central banks tighten other than the PBOC Japan has taken a different path. Earlier today Japanese CPI came in with 2.5% headline and 2.1% core prices.

BOJ kuroda

 BoJ Chief Kuroda

Kuroda did acknowledge the latest CPI but also said that he’s forecast 2% inflation for a while and that it’s not sustainable in Japan

Japanese CPI inflation data for April

  • National CPI 2.5% y/y, highest for the headline rate since October 2014 (which was impacted by the sales tax hike, if you remove that it’s the highest since December 1991). Expected 1.5%, prior was 1.2%
  • The consumer price index for Japan in April 2022 was 101.5 (2020=100), up 2.5% over the year before seasonal adjustment, and up 0.4% from the previous month on a seasonally adjusted basis.
Japan CPI Monthly
  • National CPI excluding Fresh Food 2.1% y/y (core inflation), highest for this since Marc 2015, expected 2.1%, prior was 0.8%
  • Core Consumer Prices in Japan increased to 101.40 points in April from 100.90 points in March of 2022
Japan Core Inflation Monthly
  • National CPI excluding Food, Energy 0.8% y/y (core-core inflation and closest measure to the US core CPI) expected -0.9%, prior was -0.7%
  • CPI Core Core in Japan increased to 0.80 percent in April from -0.70 percent in March of 2022.
Japan Core Core Inflation Monthly


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