June 2022 Consumer Price Index

Upward pressure led by foods continues, with Core CPI growth rate up in comparison to the previous month

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  • Yuki Seto

Summary

◆Japan’s June 2022 core CPI (excluding fresh foods) was at +2.2% y/y, with the growth rate up by 0.1%pt in comparison to the previous month. While upward pressure from energy weakens, foods and meals outside the home continued to strengthen in their upward pressure on the index.

◆Looking at contribution by component in June 2022, energy continued to decline, while food related items grew, bringing overall growth in contribution from non-durable goods with the exception of fresh foods. Meanwhile, contribution to the index from durable goods, semi-durable goods and services grew by a small margin.

◆Japan’s core CPI is expected to continue experiencing upward pressure influenced by rising import prices. Both the price of goods and the price of services centering on components easily influenced by trends in import prices, especially meals outside the home, are very likely to continue to rise. On the other hand, the government’s program to mitigate extreme fluctuations in the price of fuel oil are expected to prevent any sharp increases, with core CPI expected to maintain y/y growth of around +2.0%. However, depending on trends in the price of imports, core CPI could experience a further upswing.

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