Japan Core CPI Above US Core CPI: For the first time in almost 50 years, Japan’s Core Consumer Price Index (CPI) is higher than US Core CPI, excluding two periods of sales tax hikes. Japan’s core inflation has spent most of the past three years meaningfully above the Bank of Japan’s 2% target.
Japan - Yields Continue Upward March: Japan has been among the world’s worst-performing bond markets this year, as rising yields reflect shifting monetary policy expectations and persistent inflation pressures.
Japan - Real Wages Stagnate: Many Japanese feel left behind, a sentiment that helps explain the country’s ongoing political shakeup.
US - Increasing Pessimism About Job Market: The gap between those saying jobs are plentiful versus hard to get fell in August to the lowest level since early 2017, excluding the pandemic. One in five individuals now say jobs are ‘hard to get.’
US - Majority Expect Rising Unemployment: A majority of Americans expect unemployment to rise over the next year, a level of pessimism not seen outside of recessions.
US - ISM Services Price Index Rising: The rise in the ISM Services Price Index is likely to support core CPI. The Fed now appears poised to cut rates with core inflation above 3%, something seen only once since 1985.
South Korea - Consumer Sentiment Surges: Consumer sentiment has climbed steadily this year, reaching a seven-year high on the back of rising stock prices and resilient exports.
UK - Meaningful Slowdown in Owner Occupiers’ Housing Costs: A long-awaited slowdown in UK Owner Occupiers’ Housing Costs is key to driving further declines in services inflation and, ultimately, core inflation.
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