Japan's inflation may follow upward trend

Japan's year on year CPI inflation data for June is expected to release today. The country's CPI inflation posted 0.5% yoy growth in May, but expected to be higher in June. 

Hardly anyone will be better placed to understand Riksbank's concerns than the Bank of Japan (BoJ). It too has been hoping for inflation to rise for a long time. And indeed things seem to look a little better in Japan in this respect recently than in Sweden, says Commerzbank. At least a certain uptrend has become discernible over the past few months. 

"The risk of further expansionary measures on the part of the BoJ is likely to be very high. A glance at the data for Tokyo, where the June data is already available, does not exactly give cause for optimism though. Here prices fell again mom. If the nationwide data turns out weak too, things will get uncomfortable for JPY tonight", states Commerzbank.