Released from Japan, the all items CPI rose 0.1% mom, 0.7% yoy in June. Core CPI, all item less fresh food, rose 0.1% mom, 0.8% yoy. Core core CPI, all item less fresh food and energy, has indeed dropped -0.1% mom and rose 0.2% yoy.
The set of data should be rather disappointing for the BoJ. The decline in core core CPI suggests that inflation was mainly driven by the surge in energy costs. There wasn’t much of press pressure elsewhere. It’s remains a long road to meet its 2% inflation target. And there is no light on when the central could withdraw the massive stimulus.
