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Tokyo CPI Spikes To Highest Since 1992 (Well Above Abe's 2% Target)

Tyler Durden's picture


If this evening's data from Tokyo on April's Consumer Price Inflation is any guage on the national inflation picture, those hoping for moar stimulus had better start praying for war. Thanks to favorable comps and the April 1st tax rise, Tokyo CPI jumped to 2.9% YoY - its highest since 1992 - and well above the BoJ's 2% inflation goal. Mission accomplished (almost)... except that the economy just won't play ball and now stocks are fading too (along with Abe's approval ratings).



No room for moar stimulus after this...


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Thu, 04/24/2014 - 19:46 | 4693137 fonzannoon
fonzannoon's picture

Their CPI came in so hot it is radiating.

This is why I won't do 2 shows a night anymore. I just won't do it.

Thu, 04/24/2014 - 20:03 | 4693197 ApollyonDestroy
ApollyonDestroy's picture

Oh they're still going to ease further, don't be fooled, this is going to meltdown completely. Long ignorance and arrogance

Thu, 04/24/2014 - 20:58 | 4693399 Redneck Hippy
Redneck Hippy's picture

The reason for continued yen printing is that the Bank of Japan is the only market for JGBs, the interest rates for which MUST NOT RISE, no matter what, or Japan will be forced to recognize the fact that it is bankrupt.   Hence printing must continue indefinitely, inflation or not.  

Because, as Rick Santelli pointed today, all stimulus is fungible, the continued printing will keep our interest rates down, but not, in the long run, theirs.

Thu, 04/24/2014 - 21:05 | 4693415 fonzannoon
fonzannoon's picture

It's funny how the 10yr JGB is off 1bp right now, as if to illustrate a real bond market pricing in this news.

Thu, 04/24/2014 - 21:09 | 4693427 Tabarnaque
Tabarnaque's picture

Good job! Inflation with no economic growth!

Thu, 04/24/2014 - 21:32 | 4693486 FuzzyDunlop21
FuzzyDunlop21's picture

This is what you wanted, bitchez. Where the fuck is your deflation now?

Thu, 04/24/2014 - 19:46 | 4693138 LetThemEatRand
LetThemEatRand's picture

"those hoping for moar stimulus had better start praying for war."

That's where those doing "God's work" come in.

Thu, 04/24/2014 - 19:48 | 4693147 fonzannoon
fonzannoon's picture

so prices are rising at 2.9% and someone wants to own a 10yr JGB at .60%. Makes sense.

Thu, 04/24/2014 - 19:52 | 4693151 LetThemEatRand
LetThemEatRand's picture

In their defense, you can only invest so much in panty vending machines.  What do they call those again?

Thu, 04/24/2014 - 20:28 | 4693299 garypaul
garypaul's picture

I've got some good innovations [passion and vision as they say], I just need some investors.

Thu, 04/24/2014 - 19:58 | 4693182 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

JGBs just went 48 hours without a single bid. Not one. Apart from the issuer, of course. And isn't it lovely how Japanese wages are keeping right up. My God what did people think would happen?

Thu, 04/24/2014 - 20:04 | 4693201 kaiserhoff
kaiserhoff's picture

I'm rusty on the floor trading rules.

Does that place them on the pink sheets;)

Thu, 04/24/2014 - 20:32 | 4693314 Fox Moulder
Fox Moulder's picture

Brown sheets.

Thu, 04/24/2014 - 20:51 | 4693379 kaiserhoff
kaiserhoff's picture

It's fun to make fun of Abe, and he deserves it, but this could be a tipping point.

Who will buy this shit?

Thu, 04/24/2014 - 20:01 | 4693189 kaiserhoff
kaiserhoff's picture

Not someone fonz, some thing.

The Creature from Jekyll Island?

Thu, 04/24/2014 - 19:49 | 4693148 fonzannoon
fonzannoon's picture

dup, poop.

Thu, 04/24/2014 - 19:51 | 4693161 LetThemEatRand
LetThemEatRand's picture

That's the name of the panty vending machine I was trying to remember.

Thu, 04/24/2014 - 19:56 | 4693174 Harbanger
Harbanger's picture

Can we stop talking about your gay fetishes and talk about Japans CPI which is not a surprise.

Thu, 04/24/2014 - 19:57 | 4693178 LetThemEatRand
LetThemEatRand's picture


Thu, 04/24/2014 - 20:30 | 4693204 Harbanger
Harbanger's picture

No matter the occasional semblance of sanity, you do represent the average Democrat in the US.

Edit: may I respond to a Democrat with hurt feelings so I can explain their statist mindset?  I know, politicians, they're all the same.  I just want to show you why there is no such thing as a benevolent Gov.  THIS IS SUPPOSED TO BE FIGHT CLUB BITCHEZ, I DON'T EXPECT LOLA the bitch WHO VOTED FOR OBAMA TO CHALLENGE ME, BUT THERE HAS TO BE AT LEAST ONE LIB WHO CAN DEFEND HIS/HER POSITION, NO?

Thu, 04/24/2014 - 21:02 | 4693406 Redneck Hippy
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Which position are we talking about? Are still wallowing in gay fetishes?

Thu, 04/24/2014 - 21:24 | 4693470 Harbanger
Harbanger's picture

That's not a thoughtful response, Redneck Hippy.  Ask yourself why did you expect gov to solve your problems when they've only been raping you.

Thu, 04/24/2014 - 22:14 | 4693601 Redneck Hippy
Redneck Hippy's picture

They've been raping me?  Would that me more gay sex?  Or more like Angelina Jolie tying me up and having her way with me?

Thu, 04/24/2014 - 23:04 | 4693758 Harbanger
Harbanger's picture

They've been raping you regardless of your sexual disorientation.  But if it feels right, you can't be doing wrong. Right?  I've never read about any authoritarian Gov. in history that accepted homosexuality.  Maybe I'm wrong, tell me about it.

Thu, 04/24/2014 - 19:50 | 4693153 Yen Cross
Yen Cross's picture

  Not really surprising considering the outrageous disparity in imports vs exports numbers earlier this week.

         JPY         Exports (YoY)     [1.8%]     6.3%     9.8%      
       JPY         Imports (YoY)     [18.1%]     16.2%     9.0%

Thu, 04/24/2014 - 20:04 | 4693205 Tenshin Headache
Tenshin Headache's picture

What a mess.

Thu, 04/24/2014 - 19:54 | 4693169 Peter Pan
Peter Pan's picture

Abe will either resign due to recurring diarhea or if he is man enough he will committ hara kiri.

Thu, 04/24/2014 - 20:05 | 4693207 ShrNfr
ShrNfr's picture

Nobody around can do that right any more. You are supposed to have a second that can slice your head off but leave enough so that it flops over like the cover on a Ronsen.

Thu, 04/24/2014 - 20:03 | 4693199 ShrNfr
ShrNfr's picture

Too bad the prices are going up on the imports. That is always a "positive".

Thu, 04/24/2014 - 20:08 | 4693224 Tenshin Headache
Tenshin Headache's picture

Hopefully, as the pressure mounts, they won't lash out at China. The Chinese seem prepared to give them the opportunity, and I fear restraint might be lacking in the Abe government.

Thu, 04/24/2014 - 20:32 | 4693315 garypaul
garypaul's picture

LOL I got that...good one.

Thu, 04/24/2014 - 20:13 | 4693236 NOTaREALmerican
NOTaREALmerican's picture

I'm starting to see the signs of "Keynesian" perpetually increasing growth properity in Japan already.  

Thu, 04/24/2014 - 20:22 | 4693271 new game
new game's picture

kyle will be able to buy an island (with a tad of radiation) from just the gains...

Thu, 04/24/2014 - 20:27 | 4693295 SilverIsMoney
SilverIsMoney's picture

So where's that sociopathic cunt who claimed we were suffering through a horrible bought of low-flation! The fucking world has been taken over by insane psychopaths!

Thu, 04/24/2014 - 20:38 | 4693340 MrTouchdown
MrTouchdown's picture

"Did we say 2%? Sorry, we meant 20%. Try the tuna." - Kuroda

Thu, 04/24/2014 - 21:36 | 4693499 overmedicatedun...
overmedicatedundersexed's picture

in market today, no not that market, and well all meats are up in price with beef now outof reach for most - but inflation no no inflation. milk is going higher as well, and petrol/gasoline well don't ask.

Thu, 04/24/2014 - 20:54 | 4693390 buzzsaw99
buzzsaw99's picture

No room for moar stimulus after this...

Humor, I like that.

Thu, 04/24/2014 - 22:47 | 4693704 AdvancingTime
AdvancingTime's picture

When the yen drops faster than the Japaneses stock market rises it will no longer protect the wealth of those invested within its borders. Japan is the most indebted developed country in the world and its future prospects are dim and getting worse. It is only a matter of time before the yen becomes worthless and as inflation begins to take root it will place upward pressure on Japanese bond yields and raise the cost of government to service its massive debt.

With the BOJ  set to absorb half of the government bonds planned for sale this fiscal year, domestic investors have already started venturing overseas for higher yielding assets. If this turns in to a tsunami of  money fleeing Japan it will constitute the end of the line for those holding both JGBs and the yen. More on this subject below,

Thu, 04/24/2014 - 23:32 | 4693828 starman
starman's picture


Fri, 04/25/2014 - 03:49 | 4694098 Bernoulli
Bernoulli's picture

Japan question:

I am really no specialist here, but please can somebody explain to me: How exactly are they planning this?

- Higher inflation than before, weaken the yen, get the people to spend more. Ok, I get the idea, but then what?

- Government debt to GDP will be somthing like 240% in 2014? Yields go up (no way around it, no?). Maybe 1 little percent (they could go up 3-5% as well, wouldn't be crazy). And then?

- Japan to default on their debt? Give a nice haircut to the debt holders (more of a shave than a cut...), it's practically all Japanese individuals and institutions anyways (call it patriot tax or something like that?)

- And then start again with sustainable levels of debt

Is that the plan? And - of course - this all can be contained to Japan? There will be no contagion? USA agrees to that?

I don't get it...


Fri, 04/25/2014 - 04:43 | 4694139 constantine
constantine's picture

When I lived in Japan, it cost, between 2 tolls, over $50 to drive from Yokohama to Tokyo, which are located in close proximity to each other.  Why anybody would think that this country, which would charge people for air if it could find a way, needs inflation would be one of the most laughable jokes if not for the sad fact that 99% of the population either buy into this bullshit or don't care.

Fri, 04/25/2014 - 04:43 | 4694140 constantine
constantine's picture

When I lived in Japan, it cost, between 2 tolls, over $50 to drive from Yokohama to Tokyo, which are located in close proximity to each other.  Why anybody would think that this country, which would charge people for air if it could find a way, needs inflation would be one of the most laughable jokes if not for the sad fact that 99% of the population either buy into this bullshit or don't care.

Fri, 04/25/2014 - 07:29 | 4694426 Spungo
Spungo's picture

I guess you could say that printing money created a godzilla of inflation

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