(Tiper Stock Exchange) – Inflation grows less than expected in Japan despite a core figure that has remained at its highest level for over 40 years. According to the National Bureau of Statistics, the consumer price index (CPI) recorded in June a 3.3% year-on-year increase, lower than consensus which indicated a growth of 3.5% and after the +3.2% in May. The figure on a monthly basis shows an increase of 0.1% after the unchanged figure in May.
At these levels, inflation remains well beyond the 2% target set by the Bank of Japan. Even the figure excluding food recorded an increase of 3.3% after the previous 3.2%.
The given corewhich excludes the food component and energy, remains instead essentially unchangedby registering a +4.2% at a tendential level, remaining at one level records for over 40 years. A dynamic that has to do with the rising energy priceseven if the subsidies offered by the government to families on the increase in the cost of energy have eased the run of inflation.
Even though Core Inflation remains so high, today’s data ease pressure on the central bank to put an end to the ultra-expansive policy marked in the last decade and, above all, to put an end to the mechanism of control of the yield curve (YCC).
The Bank of Japan, at the moment, does not seem willing to change its policy in the short term, but there has been mention of a any change during the year or at the beginning of 2024when wage growth stabilizes. For BoJ governor Azuo Ueda it will take time for inflation to return to the 2% target.