Japan’s headline consumer price index (CPI) held steady at 2.8% year-on-year in June. Meanwhile, core CPI inflation – or headline CPI inflation excluding volatile food prices – rose 2.6% in the reporting period, compared with the previous 2.5% and consensus estimates of 2.7%.
Moreover, Japan’s core CPI – CPI inflation net of food and energy prices – rose slightly in June, up 2.2% year-on-year from 2.1% previously.
Japan’s national CPI inflation rate is typically ahead of the Tokyo CPI from a few weeks ago, making nationwide aggregate inflation data less influential on the market.
Economic indicator
Consumer Price Index (y/y)
Inflationary or deflationary trends are measured periodically by adding up the prices of a basket of representative goods and services and reporting the data as the Consumer Price Index (CPI). CPI data are compiled monthly and published by U.S. Department of Labor Statistics. The year-over-year reading compares the prices of goods in a reference month to the same month a year earlier. The CPI is a key indicator for measuring inflation and changes in purchasing trends. Generally speaking, a high reading is seen as bullish for the U.S. dollar (USD), while a low reading is seen as bearish.
