MNI BRIEF: Japan's May Trimmed Mean Rises 2.1% Vs. 1.8% - BOJ

Japan’s trimmed mean measure of underlying inflation rose 2.1% in May, accelerating from 1.8% in April, indicating the pass-through of cost increases is increasing again on the back of the weak yen, data released by the Bank of Japan showed on Tuesday.

Bank officials are focused on how the recent rise in import price, which rose 6.9% y/y in May for the fourth third straight rise, has affected corporate price-setting.

The trimmed mean came after data released on Friday showed Japan's annual core consumer price inflation rate rose 2.5% y/y in May, up from April's 2.2% for the 26th straight month above the 2% target.

Tuesday's data showed the mode, the inflation rate with the highest density in the distribution, stood at 1.5% in May, slowing from 1.6% in April, below the BOJ's 2% price target for the third straight month.

BOJ officials are focused on whether the underlying inflation trend based on services prices strengthens in or after April when businesses revise their prices amid high labor costs. (See MNI POLICY: BOJ Concern Grows Over Yen Impact On Wages, Prices)