Core consumer price index excluding food prices in Japan rose by 0.7% in June, unchanged from May's reading, and below expectations of 0.8% rise. While the consumer price index rose by 0.8% as expected, taking advantage of modest gains in wages, and energy costs accounted for a large part of that increase.
Inflation in Japan is still below the 2% target, which reduces opportunities for the Bank of Japan to start tightening its monetary policy anytime soon. Without high energy prices, the picture will be even worse. Core CPI excluding food and energy prices rose only by 0.2% in June.
