Japan's core inflation up for 3rd consecutive month in Jul

23 Aug '24

1 min read

Japan's core inflation up for 3rd consecutive month in Jul

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Japan's core inflation rose for a third month in a row in July, staying at or above the central bank's 2-per cent target for the 28th month in a row.
The core CPI (excludes fresh food) rose by 2.7 per cent YoY, slower than a 2.6-per cent rise in June.
But the 'core core' index (excludes fresh food, energy) rose by 1.9 per cent after June's 2.2-per cent rise.

Japan's core inflation accelerated for a third consecutive month in July, staying at or above the central bank's 2-per cent target for the 28th month in a row, according to latest official data.

The core consumer price index (CPI), which excludes fresh food, rose by 2.7 per cent year on year (YoY) in the month, slower than a 2.6-per cent rise in June.

But the ‘core core’ index, which excludes fresh food and energy costs, rose by 1.9 per cent in July after increasing by 2.2 per cent in June. It dipped below the key 2 per cent line for the first time since September 2022, domestic media outlets reported.

Kazuo Ueda, governor of the Bank of Japan, which raised interest rates to a 15-year high in July and signalled its readiness to hike borrowing costs further, is scheduled to discuss the July rate decision in parliament today.

The end of government subsidies for electricity and gas, which ended in May and returned in August, continued to be a major factor reflected in the July price increase.

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