After a week seeing GBP in red since the start of Monday, we have now reached Friday. The Friday session started off with core inflation and inflation rate for Japan. Even if we did see both core inflation and inflation rate fall since May, the levels for June are still significantly above its target rate of 2% - both coming in at 3.3%.
Noticeable is that even if we take out food and fuel from the equation – we can still see a high level for inflation. BoJ indication that domestic demand is the driving factor, and a concern for BoJ to get its inflation levels lower. A demand-driven price pressure will continue to be a key factor for BoJ to oversee. This has also led to speculations if there is further action required from Bank of Japan to inflate its interest rate levels.
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