MNI BRIEF: Japan's April Trimmed Mean Rises 1.8% Vs. 2.2% - BOJ

Japan’s trimmed mean measure of underlying inflation rose 1.8% in April, slowing from 2.2% in March, showing the pace of pass-through of cost increases is slowing, data released by the Bank of Japan showed on Tuesday.

Bank officials are focused on how the recent rise in import price, which rose 6.4% y/y in April for the third straight increase, has affected corporate price-setting.

The trimmed mean came followed data released on Friday that showed Japan's annual core consumer price inflation rate rose 2.2% y/y in April, slowing from March's 2.6% for the 25th straight month above the Bank's 2% target.

The mode-based measure of underlying inflation stood at 1.6% in April, slowing from 1.9% in March, and below the BOJ's 2% price target for the second straight month.

BOJ officials are focused on whether the underlying inflation trend based on services prices strengthens in or after June when businesses revise their prices amid high labour costs. (See MNI POLICY: BOJ To Consider Soft Yen Price Impact, Hikes Delayed)