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MNI BRIEF: Japan June Tokyo Core CPI Rises 2.1% Vs. May 1.9%

(MNI) TOKYO

The Tokyo core inflation rate accelerated to 2.1% year-on-year in June, from May’s 1.9%, marking the first acceleration and first reading above 2.0% in four months, data from the Ministry of Internal Affairs and Communications showed on Friday.

June’s rise was driven by energy prices (+0.38 pp vs. 0.29 pp), but was within Bank of Japan forecasts that expected the inflation rate to increase as the impact of pass-through cost increases continues.

Core-core CPI, a key indicator of underlying inflation that excludes fresh food and energy, rose 1.8% y/y in June, also accelerating from May's 1.7% but stayed below the BOJ's 2% target for the third straight month.

Tokyo saw processed food prices, items the BOJ closely follows, rise 3.7% in June vs. 4.4% in May, while service prices rose 0.9% in June, accelerating from May's 0.7%.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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