Japan JPY

Japan GDP Price Index YoY Prel

Impact:
Low

Latest Release:

Date:
Surprise:
0.1%
Actual:
3.3%
Forecast: 3.2%
Previous/Revision:
2.9%
Period: Q1

Next Release:

Date:
Period: Q2
What Does It Measure?
The GDP Price Index YoY Prel measures the percentage change in the price level of all goods and services produced in Japan, comparing the current year’s prices to those of the previous year. This index primarily focuses on inflationary trends and the overall cost structure within the national economy, serving as a key indicator of price stability, economic health, and purchasing power.
Frequency
This index is released on a quarterly basis, with preliminary figures published approximately one month after the end of each quarter, providing an early estimate of the GDP Price Index.
Why Do Traders Care?
Traders closely monitor the GDP Price Index as it indicates inflationary pressure within the economy, influencing monetary policy and market sentiment. Significant variations from expectations can lead to shifts in currency value, particularly the Japanese yen (JPY), and impact stock valuations as investors adjust their outlooks based on anticipated central bank actions.
What Is It Derived From?
The GDP Price Index is derived from national accounts data that includes comprehensive measurements of goods and services produced in Japan, incorporating adjustments for inflation and price changes. The calculation involves complex methodologies, including weighting based on the relative importance of various sectors, and the use of deflators to separate real growth from inflation impacts.
Description
The preliminary report indicates early trends in the averted bias towards inflation or deflation, allowing policymakers and analysts to gauge economic activity and understand potential pressure on consumer prices. This preliminary figure is important as it may lead to expectations about future interest rate adjustments, stimulating immediate reactions from traders.
Additional Notes
The GDP Price Index serves as a coincident indicator reflecting the current state of the economy and is often compared with other measures such as core inflation rates and purchasing managers' index (PMI) data. This index is significant not only for Japan but also contributes to understanding broader regional economic trends, influencing perceptions internationally.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for JPY, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
3.3%
3.2%
2.9%
0.1%
2.8%
2.8%
2.4%
2.5%
2.8%
3.1%
-0.3%
3%
2.6%
3.4%
0.4%
3.6%
3.3%
3.9%
0.3%
3.8%
4%
5.3%
-0.2%
5.1%
3.5%
2.6%
2%
2.1%
1.2%
1.1%
-0.4%
-0.5%
-0.3%
-0.4%
-0.5%
-0.4%
-1.3%
-1.3%
-1.2%
-1.1%
-1.1%
-0.7%
-0.1%
-0.2%
0.2%
0.2%
1.2%
1.1%
0.7%
1.4%
0.4%
1.5%
-3.5%
0.9%
5%
0.9%
1.2%
1.3%
0.6%
0.6%
0.4%
0.4%
0.1%
0.2%
0.2%
-0.3%
-0.3%
-0.3%
-0.3%
-0.3%
0.1%
0.1%
0.4%
0.5%
-0.3%
-0.2%
0.3%
0.1%
-0.5%
0%
-0.1%
0.2%
0.1%
0.1%
0.1%
-0.4%
-0.4%
-0.5%
-0.8%
0.1%
-0.1%
-0.2%
-0.1%
0.7%
0.8%
0.9%