Japan: CPI inflation slowing - BBH

Analysts at BBH point out that Japan reported March CPI data and both headline (1.1% y/y) and core (0.9% y/y) measures were right at consensus, slowing from February.  

Key Quotes

“Next week, the BOJ will update its forecasts and include fiscal year 2020 for the first time.  It must address the economic impact of the sales tax increase that is slated for October 2019.  A 2% inflation forecast when the effect of the sales tax is excluded will be understood as confirmation of the timing of the BOJ's exit from unconventional policies.”