Moody's Analytics Expects Inflation to Slow in Japan

According to Moody's Analytics economist Stefan Angrick, after the recently released data, inflation in Japan is expected to gradually slow down by 2025. Angrick noted that the November data showed an increase in inflation due to dwindling government support for energy bills and rising food prices. He stated, "While demand-driven price pressures remain limited, the weakness of the yen and the delayed impact of rising producer prices will keep inflation stable in the near term." Angrick also mentioned that expectations of potentially inflationary policies from the Trump administration could force the Fed to postpone interest rate cuts, leading to increased selling of the yen. Ahead of Thursday's BOJ meeting, the yen, which was at 153.5, is approaching 158 against the dollar. Angrick added that this depreciation raises the likelihood of a BOJ move and a possible currency intervention in January.