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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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.

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

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.

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.

Tabarnaque's picture

Good job! Inflation with no economic growth!

FuzzyDunlop21's picture

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

LetThemEatRand's picture

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

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

fonzannoon's picture

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

LetThemEatRand's picture

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

garypaul's picture

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

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?

kaiserhoff's picture

I'm rusty on the floor trading rules.

Does that place them on the pink sheets;)

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?

kaiserhoff's picture

Not someone fonz, some thing.

The Creature from Jekyll Island?

LetThemEatRand's picture

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

Harbanger's picture

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

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?

Redneck Hippy's picture

Which position are we talking about? Are still wallowing in gay fetishes?

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.

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?

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.

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%

Peter Pan's picture

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

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.

ShrNfr's picture

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

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.

NOTaREALmerican's picture

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

new game's picture

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

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!

MrTouchdown's picture

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

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.

buzzsaw99's picture

No room for moar stimulus after this...

Humor, I like that.

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,

http://brucewilds.blogspot.com/2013/08/japans-economy-going-forward.html

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...

 

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.

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.

Spungo's picture

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