Tokyo CPI exceeds expectations, 'scares the market,' and the Japanese yen surges by 120 points! Expectations for a December rate hike in Japan are rising, so beware of the chaos of ArbitrageClose Position.

Japan today reported a 2.2% year-on-year increase in Tokyo's core CPI in November, up from 1.8% in the previous month and an expected 2% increase, expanding for the first time in three months, indicating increased inflationary pressures and reinforcing market expectations for a December rate hike by Japan's Central Bank. After the release of the data, the USD/JPY exchange rate was 124 points to 149.94. (Synopsis: Japan's CPI is higher than expected, interest rate hike in December? Beware of the yen Arbitrage trading hot money withdrawal repeats the August stock market crash) (Background supplement: virtual asset tax reform Japan's cryptocurrency profits tax is proposed to be reduced to 20%, and a number of tax reduction measures are promoted) Japan's Ministry of Internal Affairs and Communications announced the October consumer price index (CPI) on the 22nd of this month, of which the core CPI increased by 2.3% year-on-year, slightly higher than market expectations, providing a reason for Japan's Central Bank to raise interest rates in December. Read more: Japan's CPI is higher than expected, interest rate hike in December? Beware of the yen Arbitrage trading hot money withdrawal repeats the August stock market crash And the leading indicator of Japan's core CPI, the Tokyo core CPI (excluding fresh food prices only) released today (29th), showed an annual increase of 2.2%, significantly higher than the previous month's 1.8%, and stronger than the expected 2%. Once again, the possibility of a December rate hike by Japan's Central Bank was added, and the USD/JPY exchange rate responded with a big dump. Tokyo CPI increases for the first time in 3 months According to analysis, this Tokyo core CPI is the first expansion in three months, breaking through the 2% barrier again, mainly due to the rise in food prices and the expansion of energy prices such as electricity (the Japanese government has reduced energy subsidies). Specific data show: Food prices: Food prices in Tokyo after deducting fresh food increased by 4.0% year-on-year in November, slightly higher than the previous value of 3.8%. Energy prices: Energy prices in Tokyo rose 7.4% year-on-year in November, up from 2.5% in the previous month. Among them, electricity bills increased by 9.7% annually, higher than the previous value of 4.0%, rising for the seventh consecutive month; City Gas fees increased by 6.9% year-on-year, up from 1.8% in the previous month; Gasoline prices rose 0.4% compared to 1.9% in the previous month. Japan's Central Bank rate hike could increase This leading indicator is Japan's Central Bank's last government inflation report ahead of its December 19 benchmark rate decision, and breaking the 2% target has fueled speculation about a possible rate hike by Japan's Central Bank next month, as it suggests that inflationary pressures remain in Japan, which is also reflected in the fall of the USD/JPY exchange rate in response. Kazuo Ueda, president of Japan's Central Bank, has repeatedly stressed that if the economy performs in line with Central Bank's expectations, it will consider raising borrowing costs. In response, Bloomberg economist Taro Kimura said: "The Tokyo CPI report may further strengthen the confidence of Japan's Central Bank that inflation momentum is building and the 2% target looks increasingly safe." USD/JPY big dump 124 points After the release of the CPI in Tokyo, Japan, the market quickly reflected the expectation of a rate hike, and the USD/JPY exchange rate fell sharply, falling through the 150 barrier to 149.94, more than 120 points lower than the previous close. Tentatively reported 150.15 before the deadline, with a drop of 0.68% within the day. If Japan's Central Bank decides to raise interest rates next month, it will be the second action after the rate hike in July this year, and the Close Position risk of the yen Arbitrage transaction may resurface, or have an impact on the global capital market. Related Stories Who's Crazy Selling US Debt? Japan sold $61.9 billion in Q3, the highest in history, China reduced its holdings for three consecutive months. Has the bottom arrived? Huida cooperates with SoftBank to launch 3 major plans: the first AI+5G telecommunications network, the construction of Japan's most powerful supercomputer, AI market The founder of FC2 in Japan has been arrested, and uncensored AV will disappear? Community re-suffocating the guilt controversy 〈Tokyo CPI exceeded expectations, "scared the market" yen pulled 120 points! Japan's December interest rate hike expectations are heating up, beware of the ArbitrageClose Position chaos coming again" This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".