AI Data Insight
In April 2026 (Q2 2026), Japan's Services CPI index dropped to 103.7, a significant retreat from the previous value of 104.2, indicating a short-term slowdown in upward price pressure. Benefiting from the government's cost-of-living measures and a decline in some educational service fees, overall core inflation cooled down in tandem. However, institutions point out that the strong wage growth driven by the "shunto" (spring wage offensive) is solidifying the inflation structure, and expectations for subsequent interest rate hikes by the Bank of Japan remain.