MNI BRIEF: Japan's Trimmed Mean Rises 3.3% Vs. June 3.0%

Japan's trimmed mean measure of underlying inflation accelerated to 3.3% y/y in July from June's 3.0%, showing pass-through of cost increases continuesd, although the import price fell y/y for the fourth straight month, Bank of Japan data showed Tuesday.

Data released Friday showed Japan's annual core consumer price index rose 3.1% in July, decelerating from June's 3.3%. The print represented the 16th straight month above 2%.

Tuesday's data showed the mode, or the inflation rate with the highest density in the distribution, rose to a record high of 3.0% y/y in July, up from the previous high of 2.9% in June and May. The mode-based measure of underlying inflation was above the BOJ's 2% price target for the sixth straight month.

The BOJ board in July revised up the median forecast for core CPI to 2.5% from April’s 1.8% but maintained its view that the y/y rise will slow. The board’s median forecasts for the core inflation rate in fiscal 2024 and 2025 were 1.9% and 1.6%, little changed from April’s 2.0% and 1.6%. The price risk balance, however, has improved from three months ago, indicating that a chance of achieving the bank’s 2% target is increasing.