Japan all-item CPI dropped from 2.5% yoy to 2.4% yoy in June. CPI core (all-items ex-fresh food), rose from 2.1% yoy to 2.2% yoy, matched expectations. CPI core-core (all-items ex-fresh food, energy) rose from 0.8% yoy to 1.0% yoy.
The CPI core reading has now stayed above BoJ’s 2% target for a third consecutive month. The core-core reading was also the strongest since February 2016.
BoJ left monetary policy unchanged yesterday. According to the new economic forecasts, core CPI will hit 2.3% this year, but then slowed back to 1.4% in fiscal 2023, and then 1.3% in fiscal 2024.
