AI Data Insight
Japan's Services CPI for Q2 2026 (June) was 103.9, flat from the previous month, with the annual growth rate maintained at a moderate level of approximately 1.0%. Although the national core CPI annual growth rate rebounded to 1.6% in line with market expectations, driven by the phase-out of energy subsidies, underlying prices excluding energy conversely showed a slowdown. The stickiness of services prices indicates that wage transmission has yet to materialize, which will influence the Bank of Japan's future pace of monetary tightening.