Japan: Inflation drops to lowest level since November 2024 in June
Latest reading: Inflation came in at 3.3% in June, down from May’s 3.5%. June’s result represented the weakest inflation rate since November 2024 but was still well above the Bank of Japan’s 2.0% target. Price pressures cooled for electricity and gas thanks to government subsidies. That said, food prices accelerated as a result of an over-100% increase in rice costs.
Annual average inflation was unchanged at May’s 3.2% in June. Meanwhile, core inflation—which excludes fresh food prices—fell to 3.3% in June from the previous month’s 3.7%. Finally, ‘core-core’ inflation—which excludes both fresh food and energy costs—rose to 3.4% from 3.3%.
Finally, consumer prices fell 0.10% from the previous month in June, contrasting the 0.31% increase seen in May. June’s result marked the weakest reading since February.