Japan today announced that Tokyo's core CPI increased by 2.2% in November, higher than last month's 1.8% and the expected 2%. It was the first expansion in three months, indicating increased inflationary pressure and intensifying market expectations for the Bank of Japan to raise interest rates in December. expected. The dollar fell 124 points to 149.94 yen after the data was released. (Preliminary summary: Japan’s CPI is higher than expected, will interest rates be raised in December? Beware of the withdrawal of hot money from yen arbitrage trading to repeat the August stock market crash) (Background supplement: Virtual asset tax reform) Japan’s cryptocurrency profits tax is planned to be reduced to 20%, and the promotion Multiple tax reduction measures) Japan’s Ministry of Internal Affairs and Communications announced the Consumer Price Index (CPI) for October on the 22nd of this month. The core CPI increased by 2.3% year-on-year, slightly higher than market expectations, providing reason for the Bank of Japan to raise interest rates in December. Extended reading: Japan’s CPI is higher than expected, will interest rates be raised in December? Beware of the withdrawal of hot money from yen arbitrage trading to repeat the August stock market crash. The leading indicator of Japan's core CPI, the November Tokyo core CPI (only excluding fresh food prices) released today (29th), showed an annual increase of 2.2%, significantly higher than the previous year. 1.8% in the previous month, which was stronger than the 2% expected. This once again raised the possibility that the Bank of Japan would raise interest rates in December, and the dollar/yen exchange rate fell sharply in response. Tokyo's CPI expanded for the first time in 3 months. According to analysis, Tokyo's core CPI expanded for the first time in 3 months and once again exceeded the 2% mark. This was mainly due to rising food prices and increased increases in energy prices such as electricity bills. (The Japanese government reduced energy subsidies). Specific data show: Food prices: Food prices excluding fresh food in Tokyo increased by 4.0% year-on-year in November, slightly higher than the previous value of 3.8%. Energy Prices: Tokyo energy prices rose 7.4% year-on-year in November, much higher than the previous 2.5% increase. Among them, electricity charges increased by 9.7% annually, higher than the previous value of 4.0%, rising for the seventh consecutive month; City Gas charges increased by 6.9% annually, higher than the previous value of 1.8%; gasoline prices rose by 0.4%, The previous value was a decrease of 1.9%. The Bank of Japan may raise interest rates. This leading indicator is the last government inflation report before the Bank of Japan's benchmark interest rate decision on December 19, and the breach of the 2% target has intensified market speculation that the Bank of Japan may raise interest rates next month. , because this shows that Japan's inflation pressure still exists, which is also reflected in the corresponding decline in the dollar against the yen exchange rate. Bank of Japan Governor Kazuo Ueda has repeatedly stressed that if the economy performs in line with the central bank’s expectations, it will consider raising borrowing costs. In this regard, Bloomberg economist Taro Kimura said: "The Tokyo CPI report may further strengthen the Bank of Japan's confidence that inflation momentum is building and the 2% target looks increasingly safe." USD/JPY fell 124 After Japan's Tokyo CPI was announced, the market quickly reflected expectations of interest rate hikes, and the dollar-yen exchange rate fell sharply, falling below the 150 mark to 149.94, down more than 120 points from the previous day's closing. It was temporarily trading at 150.15 before the deadline, down 0.68% on the day. If the Bank of Japan decides to raise interest rates next month, it will be the second action after raising interest rates in July this year. The risk of unwinding the yen arbitrage trade may resurface, which may have an impact on global capital markets. Related reports: Who is selling U.S. debt like crazy? Japan's Q3 sales hit a record high of US$61.9 billion, and China has reduced its holdings for three consecutive months. Is the bottom reached? Huida cooperates with SoftBank to launch three major projects: the first AI+5G telecommunications network, building Japan's most powerful supercomputer, and AI market. The founder of Japan's FC2 was arrested. Will uncensored AV disappear? The community once again stirred up the controversy over tool guilt. "Tokyo's CPI exceeded expectations and "scared the market." The yen plunged 120 points! Expectations for Japan to raise interest rates in December are rising, so be careful of the recurrence of arbitrage and liquidation chaos." This article was first published on BlockTempo (Dong District Dongzhu - the most influential blockchain news media).