Inflation in Japan continued to rise for the eleventh consecutive month in 2017, with the national core consumer price index rising by 0.9% in November after rising by 0.8% in October. Along the same line, household spending rose more than expected in November, rising by 1.7% YoY versus expectations of a 0.6% rise.
Also, unemployment fell to a 24-year low of 2.7%, and economic data continues to show Japan's economic recovery, and would push inflation higher to achieve the Bank of Japan's 2% target.
The new year will put more pressure on the Bank of Japan to get rid of its broad stimulus program as other central banks seek to end post-crisis policies. The main problem in Japan remains wages, and the Japanese Prime Minister has urged Japanese companies to raise wages by 3% or more during the next year.
With most of the markets closed for Christmas, markets are moving too narrowly, and the euro has fallen slightly after today's early rise and continued to be affected by the success of separatist parties in Catalonia in last Thursday's elections that deepened the political crisis in Spain.
Last week saw the passing of tax adjustments in the United States that would support short-term economic growth, which has seen significant improvements recently. The federal government also avoided a shutdown after Congress passed a bill to fund it until Jan. 19.
Bitcoin offset some of its losses last week, its worst week since 2013, and rose again today exceeding levels of $15,000.
