Japan June 2025 CPI remains well above the Bank of Japan target rate, still | Forexlive
All three of the main inflation measures in Japan remain well above the 2% Bank of Japan target rate
Headline CPI 3.3% y/y
- expected 3.3%, prior 3.5%
Core CPI (this is excluding fresh food) 3.3% y/y
- expected 3.3%, prior 3.7%
- analysts are attributing the drop from May on temporary cuts in utility bills and the resumption of fuel subsidies
Core-core CPI (this is excluding fresh food and energy ) 3.4% y/y
- expected 3.3%, prior 3.3%
The scuttlebutt is that the Bank of Japan will be boosting its inflation forecasts in a quarterly review of its projections at the next meeting (July 30 and 31). Seems logical given the ongoing run of high readings:
Cost of living pressures are an important issue in Japan and will likely take a toll on the ruling party in thie weekend’s election. This Sunday, Japan will vote in its upper‑house election for 124 of 248 seats—a critical mid‑term test for Prime Minister Shigeru Ishiba’s embattled coalition of the Liberal Democratic Party (LDP) and Komeito.
The LDP is widely expected to lose its majority in the upper house, signaling further political instability following last year’s lower‑house losses. The governing minority is feeling pressure from economic headwinds like inflation, rising living costs, and the threat of U.S. trade tariffs.
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