BoA have hiked their forecasts for Japanese inflation – core CPI above 2% through 2025

<p>Yesterday we had Japanese firms forecasting above-target inflation out for 5 years:</p><ul><li><a href="https://www.forexlive.com/centralbank/bank-of-japan-q3-tankan-report-firms-expect-the-cpi-still-above-2-target-in-5-years-20231001/" target="_blank" rel="follow">Firms expect the CPI still above 2% target in 5 years</a></li></ul><p>BoA, too, has been busy raising their inflation forecasts for Japan. Core-core to stay above 2% through 2025 (core-core is the Japanese measure of CPI excluding fresh food and energy and is the closest to the US 'core' CPI measure)</p><ul><li>BoJ core CPI forecasts (ex. energy) raised by 0.4ppt, to 2.6% YoY for 2024</li><li>and 2.1% for 2025</li></ul><p>BoA had previously forecast the BoJ core CPI to fall below 2% in H2 of 2024</p>

This article was written by Eamonn Sheridan at www.forexlive.com.