Imports and exports down, as global trade continues to wind down. And the trade surplus remains yen friendly. However intervention will likely prevent any material yen appreciation:
Rail Again Moves Deeper Into Contraction
Week 19 of 2016 shows same week total rail traffic (from same week one year ago) declined according to the Association of American Railroads (AAR) traffic data. Rolling averages continue moving deeper into contraction.
The deceleration in the rail rolling averages began one year ago, and now rail movements are being compared against weaker 2015 data – and it continues to decline. We do not believe the data is affected this week by the labor issues in the ports one year ago.
Medicare Payment Cuts Continue To Restrain Inflation
from the San Francisco Fed
A steady downward trend in health-care services price inflation over the past decade has been a major factor holding down core inflation. Much of this downward trend reflects lower payments from public insurance programs. Looking ahead, current legislative guidelines imply considerable restraint on future public insurance payment growth. Therefore, overall health-care services price inflation is unlikely to rebound and appears likely to continue to be a drag on inflation.