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Labour Market (Jan. 23) & Tokyo CPI (Feb. 23)

The unemployment fell slightly in January but we’re still expecting it to rise through mid-year due to an economic downturn. Meanwhile, energy inflation fell by less than we expected in Tokyo as government subsidies had a smaller impact than we expected on gas prices. Inflation should average higher than we previously forecast in Q2 and Q3, but that shouldn’t stop it from falling below target around mid-year.

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