Overview
- Tokyo’s core consumer price index excluding fresh food rose 3.1% in June from a year earlier, down from a 3.6% gain in May but still well above the 2% target.
- The core-core index, which strips out both fresh food and fuel costs, also slowed to a 3.1% annual rise in June after a 3.3% increase in May.
- Electricity inflation cooled to 5.3% year-on-year as energy subsidies resumed and gasoline prices fell 1%, while Tokyo waived water charges to ease household bills.
- Service-sector inflation held at 2.1% in June, indicating that price gains are extending beyond volatile import-linked items.
- After lifting rates to 0.5% in January, the Bank of Japan will weigh headline and underlying readings at its July 30–31 meeting and may raise borrowing costs further if wage-driven inflation persists.