Japanese consumer prices rose in June by 0.4% on an annual basis, the same rate as in the previous two months. However, there is no change on a monthly basis. Friday’s index includes prices for energy products, but not those of fresh food.
Indicating that the tightening labor market has yet to fuel inflation, core consumer price gains held steady in June, government data showed on Friday, undermining the Bank of Japan’s arguments that tightness in labor markets will force companies to raise wages and prices soon.
Without reading the prices of fresh food and energy, prices would remain unchanged.
In Tokyo, where data is available a month earlier than in other regions, base inflation in June amounted to 0.2%. The economists expected it to be 0.1%. Bank of Japan is trying to push inflation up to 2% with its extremely soft monetary policy, and this is expected to boost the economy.
CPI is a closely watched figure among Japanese central bankers and policy makers as they seek to overcome decades of deflation and stagnation through boosting spending and wages.