Japan Core Inflation Rises to 1.6% as Yen Near 163 Lifts Import Costs
Updated
Updated · CNBC · Jul 24
Japan Core Inflation Rises to 1.6% as Yen Near 163 Lifts Import Costs
2 articles · Updated · CNBC · Jul 24
Summary
Japan’s core consumer inflation rose to 1.6% in June from 1.5% in May, marking its first increase since March and matching economists’ forecasts.
Oil and currency pressures drove the pickup: energy prices fell just 0.1% year on year after a 2.5% drop in May, while the yen hovered near 163 after touching 163.23.
Upstream cost pressure remains stronger than consumer inflation, with June producer prices up 7.1%—the highest since March 2023—and petroleum import values surging more than 59% from a year earlier.
Underlying domestic price momentum was softer, with core-core inflation easing to 1.7%, its lowest since August 2022, even as Japan imports more than 87% of its energy needs.
That mix is keeping the Bank of Japan alert to upside inflation risks, with Reuters reporting some officials see scope for faster rate hikes if weak-yen and fuel-cost pressures intensify.