Japan's annual core consumer inflation hit 2.0% in January, marking the slowest pace in two years, data showed on Friday, suggesting weakening cost-push pressure that could complicate the central bank's decision on how soon to raise interest rates.

The year-on-year increase in the core consumer price index, which excludes volatile fresh food costs, matched a median market forecast and slowed from a 2.4% gain in December. 

The data is in line with the Bank of Japan's projection that core consumer inflation will briefly slow below its 2% target due to the base effect of last year's spike. (RTRS – Continue Reading) 

President Trump is weighing an initial limited military strike on Iran to force it to meet his demands for a nuclear deal, a first step that would be designed to pressure Tehran into an agreement but fall short of a full-scale attack that could inspire a major retaliation. 

The opening assault, which if authorized could come within days, would target a few military or government sites, people familiar with the matter said. If Iran still refused to comply with Trump’s directive to end its nuclear enrichment, the U.S. would respond with a broad campaign against regime facilities—potentially aimed at toppling the Tehran regime. (WSJ – Continue Reading) 

New Zealand’s economy has room to recover this year without generating excessive inflation, Reserve Bank Governor Anna Breman said.

“We expect declining tradables inflation to bring New Zealand’s inflation rate back within our target range, while the more persistent inflation pressures continue on their gradual path lower,” Breman said in a speech Friday in Christchurch. “This will provide the New Zealand economy with room to further recover, without a lift-off in inflation.” (BBG – Continue Reading)