Japan Core Inflation Rises In June
(RTTNews) - Japan's core inflation rose for the second straight month in June, keeping alive hopes of another interest rate hike.
Core inflation that excludes fresh food edged up to 2.6 percent in June from 2.5 percent in May. However, this was slightly below economists' forecast of 2.7 percent, the Ministry of Internal Affairs and Communications said.
Likewise, the consumer price index excluding prices of fresh food and energy also rose marginally to 2.2 percent from 2.1 percent. At the same time, headline inflation held steady at 2.8 percent.
Capital Economics' economist Marcel Thieliant said underlying inflation is likely to remain around 2 percent until early-2025. This will prompt the Bank of Japan to hike rates both this month and in October. The next policy announcement is due on July 31.
Although actual inflation figures slightly missed market consensus, inflationary pressures are building on both the supply and demand sides, ING economist Min Joo Kang said.
Given the recovery in consumption, solid wage growth, and the potential for further inflationary pressures from a weaker yen, the BoJ is set to raise its policy rate by 15 basis points this month, the economist added.
Japan Service Sector Growth Moderates
Japan Jobless Rate Climbs To 2.5%
Tokyo Inflation Jumps To 2.7% Annually In September
Japan Manufacturing Sector Ebbs In September - S&P Global
BoJ Tankan: Large Manufacturing Index Improves In Q3
Japan Retail Sales Gain 2.7% On Year In August
Japan Industrial Output Sinks 1.7% In August
