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