CPI s.a. reflects changes in prices of goods and services purchased by households in Japan. The index estimates the price change from the consumer perspective, in the given month compared to the previous month. The index is used to measure inflation.
The effect of CPI on yen quotes depends on accompanying factors. CPI growth against insufficient inflation is seen as positive for the currency. However in recession, the rise in CPI may lead to a more severe economic downturn and fall in the national currency.