MNI BRIEF: Japan's July Trimmed Mean Rises 1.8% Vs. 2.1% - BOJ
MNI (TOKYO) - Japan’s trimmed mean measure of underlying inflation rose 1.8% in July, slowing from 2.1% in June, indicating the pace of the pass-through of cost increases caused by the weak yen 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 increased 10.8% y/y in July for the sixth third straight rise, will impact corporate price-setting over the coming months.
The trimmed mean followed data on Friday that showed Japan's annual core consumer inflation rate rose 2.7% y/y in July, up from June’s 2.6% for the 27th straight month above the 2% target.
Tuesday’s data showed the mode, or the inflation rate with the highest density in the distribution, stood at 1.5% in July, slowing from 1.6% in June, below the BOJ's 2% price target for the fifth straight month.
The BOJ will likely not be able to raise its policy interest rate further before the first quarter of 2025, former board member Makoto Sakurai told MNI last week. (See MNI INTERVIEW: No BOJ Rate Rise Before Q1 2025 - Sakurai)