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Japan core inflation rate in June creeps up from 4-year low as higher oil prices bite
Wholesale prices jumped 7.1% in June, reinforcing expectations that higher input costs will filter through to consumers later this year.
- Japan's core consumer prices rose 1.6% in June, accelerating from a 1.4% increase in May, data showed on July 24. The index remained below The BOJ's 2% target for a fifth consecutive month.
- Fuel subsidies offset rising raw material costs stemming from the Middle East, tempering consumer inflation. Wholesale inflation accelerated sharply in June, with the producer price index surging 7.1%, the fastest pace in more than three years.
- Food inflation moderated due to slumping rice prices, while service inflation slowed to 1.2% from 1.4% in May. This suggests firms have yet to aggressively pass rising input costs to households.
- In June, The BOJ raised interest rates to a 31-year high in a landmark step in policy normalization, signaling readiness to tighten further. This addressed energy-driven price pressures from the Middle East conflict.
- Analysts expect consumer inflation to accelerate later in 2026 as recent producer price surges filter through the economy. The Bank will scrutinize this data at its policy meeting next week.
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The Economic TimesReposted by 
Times of India
Times of IndiaGlobal Market: Japan's core inflation picks up in June; BOJ rate outlook keeps markets on edge
Japan's core consumer inflation rose to 1.6% in June. This increase occurred while food prices eased and service inflation slowed. Underlying inflation, excluding food and fuel, also saw a slight decrease. Economists anticipate stronger inflationary pressures later this year due to rising energy costs. The Bank of Japan will consider these figures at its upcoming policy meeting.
·Mumbai, India
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Total News Sources25
Leaning Left1Leaning Right5Center10Last UpdatedBias Distribution63% Center
Bias Distribution
- 63% of the sources are Center
63% Center
C 63%
R 31%
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