Australia April CPI slows to 4.2% but core inflation creeps to highest since 2024

NAB joins CBA and Westpac in flagging firm Australian underlying inflation for April

Japan: Tokyo area April CPI headline 1.5% y/y (expected 1.7%, prior 1.4%)

The desk interprets the latest Tokyo CPI data as a clear signal that the Bank of Japan (BoJ) is unlikely to accelerate its rate hike plans. Per the full note from Eamonn Sheridan, the April 2026 headline CPI came in at 1.5% year-on-year, missing expectations of 1.6% and reflecting a marginal increase from the prior 1.4%. This subdued inflation data, particularly the core CPI at 1.5%—the slowest since March 2022—provides the BoJ with the necessary leeway to maintain its accommodative stance despite previous signals suggesting a potential hike in June.

Japan April CPI preview: core inflation seen slipping further below BOJ target

China April CPI 1.2% y/y (expected 0.8%, prior 0.1%)

The desk interprets the April CPI data from China as a significant indicator of rising inflationary pressures, which could influence monetary policy decisions. Per the full note [source], the year-on-year CPI came in at 1.2%, surpassing expectations of 0.8% and marking a notable increase from the previous 0.1%. This uptick, alongside a PPI of 2.8% year-on-year—the highest in 45 months—suggests a potential shift in the economic landscape that traders should monitor closely.