2023-06-23 06:08:40
Finance｜JPY/HKD once fell to 5.45, and the core CPI rose 4.3% in May to hit a 42-year high in June. The manufacturing PMI returned to contraction
The Japanese government announced that the overall national consumer price index (CPI) rose 3.2% year-on-year in May, narrowing from 3.5% in April. During the period, the national core CPI excluding fresh food but including energy also slowed down to 3.2% year-on-year from 3.4% in April, but it was still slightly higher than the 3.1% expected by the market, staying within the central bank’s 2% target for 14 consecutive months above.
The Bank of Japan’s most concerned core CPI, which excludes fresh food and energy, accelerated to 4.3% year-on-year, the largest increase in nearly 42 years since June 1981.
During the period, due to the effect of government subsidies, energy costs fell by 8.2% year-on-year, but food inflation accelerated, rising from 9% in April to 9.2%. The market estimates that the Bank of Japan may raise its inflation forecast in July and even adjust its stimulus policy due to the data exceeding expectations.
Due to weakening business confidence and demand, Japan’s seasonally adjusted Manufacturing Purchasing Managers Index (PMI) fell into contraction again in June, with the initial value falling to 49.8, falling below the 50 dividing line between prosperity and decline; the final value in May was 50.6. Both output and new orders swung from growth in May to declines, with new export orders falling at the fastest pace since February.
The initial value of Japan’s seasonally adjusted services PMI in June fell to 54.2, the first slowdown in seven months, compared with a record 55.9 in May. New business and new export orders slowed from May, but remained strong, driven by improved customer numbers and spending amid the post-pandemic recovery. The initial composite PMI for June was 52.3, down from a 10-year high of 54.3 set in May.
Affected by the above-mentioned weak economic data, coupled with the news that US Federal Reserve Chairman Powell said that he may raise interest rates twice in the second half of this year, the yen weakened further, temporarily trading at 143.2 against one US dollar. One hundred yen against the Hong Kong dollar once fell below 5.5 and saw 5.45, and the latest report was 5.55.
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