Inflation CPI

The inflation rate in Japan is based upon the consumer price index (CPI). Consumer prices in Japan rose 0.6 percent year-on-year in November of 2017, following a 0.2 percent gain in the prior month. The figure was slightly above market consensus of 0.5 percent. Inflation Rate in Japan averaged 3.02 percent from 1958 until 2017, reaching an all-time high of 24.90 percent in February of 1974 and a record low of -2.50 percent in October of 2009.
Core consumer prices, which exclude fresh food, rose 0.9 percent from a year earlier, after a 0.8 percent rise in October while markets expected 0.8 percent, which was the highest figure since March of 2015. As the Inflation CPI in Japan is consistently below the 1.0% rate, it indicates that there are not any severe inflationary pressures in the economy, which may be negative for the Japanese Yen, as the Bank of Japan has not any real incentive to raise the key interest rate and fight inflation, change its monetary policy.
The Inflation CPI will be influenced by the level of consumer spending, and future economic growth, plus the level of the exchange rate for the Japanese Yen against other currencies, especially for the export prices as Japan has a strong focus on exports and has a current balance of trade surplus