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Japan's National CPI rises 3.1% YoY in July, Core CPI climbs more than expected
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Japan's National CPI rises 3.1% YoY in July, Core CPI climbs more than expected
New
2025.08.22 08:32
2025.08.22 08:32
2025.08.22 08:32
Japan's National Consumer Price Index (CPI) rose by 3.1% YoY in July, compared to the previous reading of 3.3%, according to the latest data released by the Japan Statistics Bureau on Friday.
More to come...
Inflation FAQs
Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%.
The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls.
Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money.
Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.
Last updated
: 2025.08.22
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GBP/USD maintains position above 1.3400 ahead of Fed Powell's speech
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2025.08.22 11:58Japanese Yen hits three-week low against USD after domestic inflation data
The Japanese Yen (JPY) slides to a three-week low against its American counterpart during the Asian session on Friday and fails to gain any respite following the release of domestic inflation figures. In fact, Japan's headline National Consumer Price Index (CPI) eased slightly in July.
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2025.08.22 11:20Australian Dollar hovers near two-month lows as traders await Fed Chair Powell's speech
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2025.08.22 10:31PBOC sets USD/CNY reference rate at 7.1321 vs. 7.1287 previous
On Wednesday, the People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1321 as compared to the previous day's fix of 7.1287 and 7.1871 Reuters estimate.
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2025.08.22 09:35Japan's National CPI rises 3.1% YoY in July, Core CPI climbs more than expected
Japan's National Consumer Price Index (CPI) rose by 3.1% YoY in July, compared to the previous reading of 3.3%, according to the latest data released by the Japan Statistics Bureau on Friday.
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2025.08.22 08:31USD/CAD softens to near 1.3900 ahead of Powell's Jackson Hole speech
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2025.08.22 08:19Fed's Collins signals openness to rate cut as soon as next month
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2025.08.22 07:54Disclaimer:
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