AI Data Insight
The latest data shows that Japan's CPI index excluding fresh food and energy for March 2026 (Q2 2026) stood at 106.3, remaining flat from the previous month, with a year-on-year increase of approximately 1.05%. Although external market consensus indicated that the core-core CPI grew by 2.4% year-on-year in March, the sideways movement of the official index suggests that the momentum of price increases is being digested in the short term. The trend of the Japanese yen and the transmission of wage increases from the "Shunto" (spring wage offensive) in the coming months will be key in determining whether the Bank of Japan further raises interest rates.