Tokyo Core CPI Slows to 1.3% as April Factory Output Rebounds 0.8%

5 articles · Updated · Reuters · May 29

Tokyo's core CPI rose 1.3% in May, below the BOJ's 2% target for a fourth straight month and under the 1.5% market forecast.
Subsidies for fuel, utilities, water and tuition damped price gains even as raw-material costs climbed amid the U.S.-Israeli war on Iran; the BOJ's core-core index slowed to 1.6% from 1.9%.
April factory output increased 0.8% from March, beating forecasts for a 0.9% drop, as AI-linked demand lifted industrial and electric machinery and chip inspection equipment jumped 44.3%.
The mixed data feed into next month's BOJ meeting, where markets expect the policy rate to rise to 1% from 0.75%, with analysts still seeing inflation re-accelerate as oil prices and the weak yen raise import costs.

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