Tokyo CPI Inflation Slows to 3.1% YoY in June, Below Estimates

Tokyo CPI Inflation Cools to 3.1% YoY in June

Inflation in Japan’s capital eased in June, as the Tokyo Consumer Price Index (CPI) rose 3.1% year-over-year, down from 3.4% in May, according to data released Friday by the Japan Statistics Bureau.

This marks a slight cooling in price pressures, signaling a potential shift in the trend of steadily rising consumer prices in Japan.

Core Inflation Measures Also Decline

The Tokyo CPI excluding fresh food — a closely watched measure by the Bank of Japan (BoJ) — also rose 3.1% YoY, missing the market forecast of 3.3% and falling from 3.6% in May.

Meanwhile, the CPI excluding fresh food and energy, a gauge of underlying inflation, came in at 3.1% YoY, also easing from 3.3% previously.

Implications for Japan’s Monetary Policy

These numbers suggest inflationary pressure may be moderating, which could influence future decisions by the Bank of Japan as it evaluates potential policy normalization steps.

Explore more in our Japan inflation tracker and stay updated on BoJ monetary policy developments.

Key Takeaways:

• Tokyo CPI (June): +3.1% YoY (vs. 3.4% in May)
• CPI ex Fresh Food: +3.1% YoY (vs. 3.6% in May, 3.3% est.)
• CPI ex Fresh Food, Energy: +3.1% YoY (vs. 3.3% prior)
• All indicators point to slowing inflation in the Tokyo area