MNI DATA BRIEF: Tokyo July Core CPI Marks First Rise In A Year

The Tokyo core inflation rate posted the first year-on-year rise in 12 months in July, up 0.1% after being unchanged in June, on higher energy costs.

Energy costs rose 1.1% y/y in July, reversing a 0.4% decline in June.

The Bank of Japan has maintained the view that the underlying trend of inflation rate excluding special factors remain solid. They expect the core consumer price index (CPI) to be nearly flat in the short run but to rise gradually.

Downward pressure from the lower mobile phone charges continued, falling 29.1% y/y in July, after a 27.9% decline in June. The BOJ had estimated the impact of lower mobile phone charges in a range of -0.5 to -1.0 pp. Core-core CPI, which excludes fresh foods and energy and is the BOJ's key inflation indicator, was unchanged in July after being unchanged in June.