Japan Inflation June 2022

Japan

Japan: Core inflation comes in at highest level since March 2015 in June

July 22, 2022

Core consumer prices—which exclude fresh food—increased 0.20% over the previous month in June, matching May's reading. June's result marked the weakest reading since January.

Core inflation came in at 2.2% in June, which was up from May’s 2.1%. June's reading marked the highest inflation rate since March 2015. Annual average inflation rose to 0.7% in June (May: 0.5%). Finally, consumer price inflation fell to 2.4% in June, from May’s 2.5%.

The weak month-on-month growth in core inflation points towards a continued lack of demand-pull inflation. As a result, the potential for second-round effects—where higher prices push up wages which further increase prices in a vicious cycle—and therefore a sustained ratcheting up of inflation to above the BoJ’s 2.0% target remains a remote prospect.

FocusEconomics panelists see a rise in consumer prices of 1.9% in 2022, which is up 0.3 percentage points from last month’s forecast, while in 2023, our panelists project consumer prices to rise 1.2%.


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Japan Inflation June 2022

Note: Year-on-year and seasonally adjusted month-on-month variation of consumer price index in %.
Source: Statistics Bureau (SB) and FocusEconomics calculations.


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