Gross Domestic Product Deflator (YoY)

The Gross Domestic Product (GDP) Deflator, released by Japan’s Cabinet Office on a quarterly basis, measures the change in prices of final goods and services produced in Japan during a given period. Changes in the GDP Deflator are followed as it is a key indicator of inflationary pressures, which may provide insight into the future of monetary policy and thus anticipate higher or lower interest rates. A high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish.