There is no doubt that the yen is at historic levels but we've seen too much attention on the levels themselves,
Inflation is expected to be entrenched, with core CPI likely remaining above 2 percent for the rest of the year,
The weaker yen and rising crude oil prices are adding to that, boosting the chances of another interest rate hike by the BOJ, as early as July,
If wages rise and consumption picks up, this will give the BOJ some relief. But rising prices are inherently negative for households so we need to watch how they will affect consumption,
It is within the BOJ's expectations that the growth rate of prices of goods will slow down,
Prices are still high in the shops, monthly mortgage bills are going up, and inflation is still higher than the Bank of England's target."
While both the main and core measures of inflation eased to their lowest levels since late 2021, the continued stickiness in services inflation in particular may elicit a cautious approach among Monetary Policy Committee members."
Decreasing inflation suggests that the Bank of England is likely to maintain interest rates for an extended period, particularly considering the signs of economic recovery we've witnessed,
We must stop the boats because it is a matter of fairness.”
With a further significant drop due next month, inflation should soon return to target and the pressure to cut interest rates will grow,