Japan's June inflation rises as CPI excluding fresh food 1.6%
Japan's inflation rate nudged higher in June 2026, increasing for the first time in three months.
The jump was mainly because energy costs continued to decline, but at a far slower rate, with the consumer price index (CPI) excluding fresh food up 1.6% from last year, according to government data.
Bank of Japan pauses hikes
Energy prices didn't fall as much as before, even with government help, and a key measure that leaves out both fresh food and energy rose by 1.7%. This shows inflation is still sticking around in Japan.
The Bank of Japan recently raised its main interest rate to its highest level since 1995, but it is holding off on more hikes for now, especially with worries about the yen getting weaker against the US dollar.
All eyes are on its next meeting at the end of July to see what happens next.