Disinflation is gripping Japan as seen in other advanced economies before it, underlining the difficulties facing the Bank of Japan (BOJ) in eradicating the deflationary mindset that has dogged the nation for decades. With near-term prospects for a BOJ rate hike dimming, it means the outlook for USD/JPY will remain dictated by gyrations in US bond yields, impacting yield differentials between the two nations. According to the Japanese government, inflation dipped 0.1% in December following a 0.2% decline in November, seeing the increase on a year earlier slow to 2.6% from 2.8% a month earlier. Excluding fresh food ... (full story)