AI Data Insight
Japan's latest announced Q2 2026 CPI reached 113.0, steadily climbing from the previous value of 112.7, driving the core inflation annual growth rate to 1.8%, surpassing market consensus. This data benefited from the narrowing decline in energy prices and service sector price adjustments driven by wage growth, reflecting that the inflation structure is gradually shifting towards being driven by domestic demand. Going forward, close attention must be paid to the weak yen and oil price trends, which will become key catalysts for the Bank of Japan's next step in monetary policy.