MNI BRIEF: Japan's Trimmed Mean Rises To 3.0% Vs. Mar 2.9%

Japan's trimmed mean measure of underlying inflation increased to 3.0% y/y in April from March's 2.9%, indicating continued pass-through of cost increases, despite a fall in import prices from a year earlier, Bank of Japan data showed Tuesday.

The accelerated trimmed mean followed Friday's release of the annual core consumer inflation rate, which rose 3.4% y/y in April from March's 3.1% – the 13th straight month above the 2% target. (see: MNI BRIEF: Japan Apr Core CPI Rises 3.4% Vs Mar 3.1%).

The BOJ's latest data showed the mode, or the inflation rate with the highest density in the distribution, gained a record high of 2.8% y/y in April, accelerating from a 2.7% rise in March. The mode-based measure of underlying inflation was above the BOJ's 2% price target for the third straight month.

The BOJ maintains the view that the y/y rise of core CPI will fall below 2% toward the middle of fiscal 2023, prompting continued easy policy to achieve the 2% target sustainably, accompanied by wage increases.

The board’s median forecasts for the core inflation rate in fiscal 2023, 2024 and 2025 are 1.8%, 2.0% and 1.6%. The 2023 core CPI will be revised up in July when the policymakers update their medium-term view.