Japan: Core inflation inches up in June
July 20, 2018
The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in June, up from May’s flat reading.
Core inflation was up a notch to 0.8% in June from 0.7% in May, which was in line with market expectations. Overall inflation was unchanged at May’s 0.7% in June. Nevertheless, inflation remains well below the Bank of Japan’s inflation target of 2.0%.
Core inflation for Tokyo rose from 0.5% in May to 0.7% in June. Data on core inflation for Tokyo for July will be released on 27 July.
Japan Inflation Forecast
The median inflation forecast among BoJ members is 1.3% for FY 2018 and 2.3% for FY 2019. Last month, FocusEconomics Consensus Forecast panelists expected inflation of 1.0% in calendar year 2018, which was down 0.1 percentage points from the previous month’s estimate. In 2019, our panelists saw inflation at 1.2%.