MNI BRIEF: Japan May Tokyo Core CPI Rises 1.9% Vs. April's 1.6%
The year-on-year rise in the Tokyo core inflation rate accelerated to 1.9% in May from April's 1.6%, its first increase in three months but still below the Bank of Japan's 2% target for the second straight month, data from the Ministry of Internal Affairs and Communications showed on Friday.
The faster core CPI was within BOJ forecasts, which expected the inflation data to rise as the pass-through of cost increases continued, albeit at a slower pace.
The core-core CPI (excluding fresh food and energy) -- a key indicator in the underlying trend of inflation -- rose 1.7% y/y in May, slowing from April's 1.8% and stayed below the 2% target for the second straight month.
Tokyo saw processed food prices, a key BOJ focus, rise 4.4% in May, unchanged from April. BOJ officials' closely watched services prices rose 0.7% in May, slowing from April's 0.8%.