AI Data Insight
According to the latest data, Japan's Q2 2026 (May) composite CPI climbed to 113.5, a slight increase from the previous value of 113.0. Although government subsidies for utilities have temporarily suppressed core inflation, a weak yen and a rising Producer Price Index (PPI) are rapidly accumulating imported inflation pressure. The market expects that as companies increasingly pass on costs, inflation will heat up again, making the Bank of Japan's future interest rate hike moves a focal point.