Japan’s core consumer inflation slowed in June for the first time in four months, driven by easing energy prices. Core CPI, which excludes fresh food, decelerated from 3.7% yoy to 3.3% yoy, in line with expectations. While still above the BoJ’s 2% target — where it’s been since April 2022 — the moderation suggests waning energy cost pressures. Headline CPI also dipped to 3.3% from 3.5% in May.
However, underlying price pressures remain sticky. The core-core CPI, which excludes both fresh food and energy, rose from 3.3% yoy to 3.4% yoy, highlighting persistent inflation in services and food. Services inflation ticked up from 1.4% yoy to 1.5% yoy. Food prices excluding fresh items surged 8.2% yoy, up from 7.7% yoy. Rice inflation eased marginally but remains historically elevated at 101.7% yoy.
