economy
Japan core inflation holds steady in May, matching expectations despite energy price concerns
Headline inflation edged up to 1.5% from 1.4%, while the so called "core-core" inflation rate, eased to 1.8% from 1.9%.
TL;DR
- Japan's core inflation rate was 1.4% in May, unchanged from April and meeting expectations.
- Headline inflation increased to 1.5% in May, up from 1.4% in April.
- The "core-core" inflation rate, excluding fresh food and energy, decreased to 1.8% from 1.9%.
- Energy prices saw a smaller year-on-year drop of 2.5% in May.
- Japan's producer price index rose by 6.3% in May, the fastest pace in over three years.
- The Bank of Japan recently raised interest rates to their highest level since 1995.
- The yen remains weak, trading around 161 per dollar, despite interventions.
- A weak yen can increase inflation, particularly as Japan imports energy.