Free Trial

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

(MNI) Tokyo

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.

MNI Tokyo Bureau | +81 90-2175-0040 |
MNI Tokyo Bureau | +81 90-2175-0040 |

To read the full story


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.