AI Data Insight
Latest data shows that Japan's core CPI reached 106.5 in Q2 2026 (May), continuing to climb from the previous value of 106.3. Although suppressed by government energy subsidies, which kept the market-calculated annual growth rate at around 1.4% and below the central bank's target for the fourth consecutive month, underlying price pressures in the food and service sectors persist. As rising import costs and wage growth take effect, the market expects the Bank of Japan to maintain a gradual tightening monetary policy.