Core inflation in Japan accelerated last month, industrial output grew more than forecast and labour demand stayed at its strongest in more than 40 years in further signs of the positive energy unfolding in the world’s third biggest economy.
The core consumer price index, which excludes volatile food prices, gained 0.70% through the twelve months ended in August, matching the median market forecast after a 0.50% increase in July.
Separately, demand for labour remained at its strongest level since 1975, as data showed the jobs-to-applicants ratio holding steady at 1.52 last month. Industrial output also expanded at a better-than-expected 2.10% in August compared to July as manufacturers of autos, construction equipment, and electronic parts increased production.
All told, this positive momentum combined with consumer spending will likely translate to rising inflation over the next few months. After pulling back Thursday, USDJPY is back on the climb towards multi-month highs.