About Tasa de Inflación (CPI/HICP) (JPY)
Japan's headline Consumer Price Index (CPI) measures the monthly change in the price level of a representative basket of consumer goods and services. It is the primary inflation measure monitored by the Bank of Japan.
Why FX traders watch it
Central banks, including the Bank of Japan, set policy rates in response to inflation. An above-target CPI print increases the probability of a rate hike, which is typically jpy-positive, while below-target inflation raises rate-cut odds and can weaken the currency.
How to interpret the data
An inflation reading above consensus or above the Bank of Japan's target band is hawkish and supports the jpy. A downside surprise is dovish and tends to weigh on the currency, particularly when inflation has been trending lower for several months.