Japan all item CPI rose 0.1% mom in June, CPI core (less fresh food) rose 0.1% mom, CPI core core (less fresh food and energy) rose 0.1% mom too. Annually, CPI was unchanged at 0.1% yoy. CPI core climbed back to 0.0% yoy, up from -0.2% yoy, above expectation of -0.1% yoy. CPI core-core was unchanged at 0.4% yoy.
The pickup in CPI core out of negative territory suggests that impact of free fall in energy prices earlier this year started to fade. There could also be some stabilization effect as the nationwide state of emergency was lifted in late May. Yet, there is little chance of a strong rebound in inflation, nor the economy, as external and domestic demand remain weak with coronavirus pandemic dragging on.
