Japan Core Inflation Rate

The core consumer price index in Japan, which excludes fresh food but includes fuel costs, increased by 2.6% year-on-year in June 2024, accelerating for the second straight month following a 2.5% gain in May. Japan’s core inflation rate has now stood at or above 2% for over two years. While coming slightly less than market forecasts of 2.7%, the latest reading reinforced market expectations that the Bank of Japan could raise interest rates from current near-zero levels when it meets in late July. The BOJ shifted monetary policy in March, raising rates for the first time since 2007 and ending eight years of negative rates amid rising wages and high inflation.