Japan national CPI remains negative (-0,5%) in August

Overall consumer prices in Japan were down 0.5 percent on year in August, the Ministry of Internal Affairs and Communications said on Friday.
In a report, Statistics Bureau said that Japan’s National Core CPI remained unchanged at a seasonally adjusted -0.5%, from -0.5% in the preceding month.

That matched expectations following the 0.4 percent decline in July. It currently sits at the equal lowest level seen since March 2013.

Disinflationary forces appear to be growing, rather than subsiding, for the moment, much to the disgust of the Bank of Japan no doubt.

Earlier this month the BOJ announced a commitment to overshoot on its 2% inflation target, pledging to expand the nation’s monetary base until the annual increase in CPI exceeded its price stability target “and stays above the target in a stable manner”.

In practical terms, the Bank will buy 10-year Japan government bonds so that the yield would remain around zero while placing a cap on short-term interest rates.