Japan: Core consumer prices broadly stable in July
The core consumer price index—which excludes the price of fresh food—rose 0.20% in July over the previous month, accelerating from June’s 0.10% rise. July’s uptick was the sharpest increase in prices since November 2019 and was primarily driven by an increase in transport and communication costs.
The core consumer price index remained unchanged in July compared to the same month last year, matching June’s result and remaining well below the Bank of Japan’s 2.0% increase target. The annual average variation of core consumer prices rose to 0.1% in July (June: 0.0%). Lastly, inflation rose to 0.3% from June’s 0.1%.