Tokyo CPI % y/y
expected 3.4%, prior +3.4%
CPI excluding fresh food 3.1% y/y
expected 3.4%, prior 3.6%
CPY excluding fresh food & energy +3.1% y/y, the highest since January 2024
expected 3.3%, prior 3.3%
While core consumer inflation in Tokyo slowed in June, its still way above the Bank of Japan 2% target. Most only expect further rate hikes in Japan from early 2026.
Governor Ueda has said the BOJ will keep hiking if continued wage gains underpin consumption and allow firms to raise prices. Global uncertainties are weighing on Japan’s economy at present though. BOJ board member Naoki Tamura said on Wednesday the BOJ may need to raise interest rates “decisively”. But, he soon made like a Taco:
BOJ’s Tamura: For now, I don’t think we need an imminent rate hike
This article was written by Eamonn Sheridan at www.forexlive.com.