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The Japan Times
Japan’s inflation picks up, keeping BOJ on path for rate hikes
Japan's key inflation gauge has risen, indicating a possible change in monetary policy by the Bank of Japan. For the first time in three months, the consumer price index excluding fresh food saw a 1.6% increase in June compared to the previous year. This change is in accordance with forecasts made by economists, signaling tightening monetary strategies as inflation trends upwards.
MonitorConfidence: MediumShort term horizon
Published 24 Jul 2026, 02:45 UTC1 min read
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Summary
TL;DR
- Japan CPI excluding fresh food rose 1.6% in June.
- The overall CPI also increased by 1.7%.
- This marks a change in trend for inflation in Japan.
- The Bank of Japan is likely to consider interest rate hikes.
- The rise in inflation corresponds with economic forecasts.
Interesting facts
- The inflationary rise is the first change in three months for Japan.
- A closely watched measure of inflation excluding food/energy also grew 1.7%.
Coverage gaps
- Future economic forecasts in response to the current inflation