AI Data Insight
According to the latest data, Japan's May 2026 CPI climbed to 113.5, increasing 0.4% month-on-month, with the annual growth rate edging up to 1.5% from 1.4% in the previous month. The core CPI annual growth rate remained flat at 1.4%, in line with market consensus, and below the BOJ's 2% target for the fourth consecutive month. Despite mild headline data, the lagging effect of rising import costs and wholesale prices continues to fuel market expectations of rising inflation and BOJ interest rate hikes in the future.