AI Data Insight
Japan's latest Q2 core CPI YoY growth reported at 1.4%, flat from the previous value but significantly lower than the market expectation of 1.7%, hitting a nearly four-year low. The cooling of inflation mainly benefited from the government's subsidy policies for energy and education. Although it relieves price pressures in the short term, medium-to-long-term imported inflation risks still keep the market focused on the BOJ's next moves.