AI Data Insight
Japan's Q2 2026 core CPI MoM growth dropped to 0.0%, narrowing significantly from the previous Q1 2026 reading of 0.4%, indicating a slowdown in the upward momentum of prices. Although energy subsidies and tuition-free education policies have temporarily suppressed inflation, amid a weak yen and geopolitical risks in the Middle East, the market continues to closely watch the timing of the Bank of Japan's next rate hike.