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Japan core inflation increases for first time since March
Core inflation in Japan rose for the first time since March, reaching 1.6% in June, influenced by rising oil prices and a modest decline in energy costs despite government support. Overall inflation also increased to 1.7%, while the core underlying inflation—excluding food and energy—dipped to its lowest level since August 2022 at 1.7%. The rise in oil prices, driven by the Middle East crisis and a weakened yen, has led to higher import costs, with Japan’s oil imports increasing by more than 59% year-over-year. The producer price index reached 7.1%, the highest since March 2023. Experts expect core inflation to continue rising, reaching around 3% by early 2027.
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