A customer visits a store at Togoshi Ginza Shopping Street in Tokyo on 23 January 2025.
Philip Fong | AFP | Getty images
In June, Japan’s main inflation cooled up to 3.3%, which fell below 3.7% of the 29 -month high of rice inflation, as rice inflation showed signs of ease.
This figure – which excludes costs for fresh food – was in accordance with the 3.3% required by economists voted by Reuters.
The headline inflation rate in the country fell to 3.3%, which fell below 3.5% in May, but marking the 39th straight month that inflation has gone above the 2% target of the Bank of Japan.
The so-called “core-core” inflation rate, which excludes the prices of both fresh food and energy and is closely monitored by BOJ, climbed from 3.3% to 3.4% a month.
Rice prices, which have seen their fastest rate of increase in May in May, have increased by year to 100.2% compared to 100.2%. 101.7% jump in May,
Rice prices have started For a decline after the government issued its stockpile earlier this year, the prices have increased.
Japan was struggling in the first half of 2025 in the second half of 2024 due to rising rice prices and poor crops in 2025.
S&P Global Market Intelligence chief economist Harumi Tagchi said that the results of June were in accordance with the expectations, inflation pressure remains, especially for the items not subsidized by the government.
However, he hoped that in order to continue inflation, the rice shares would help in the measures to involve and incorporate energy prices during summer.
“However, if the yen depreciation persists, the increase in import prices may lead to higher prices. Consumer expenses expect constant vigilance because the decline in real wages and uncertainty on the economic scenario.”
In the State Street Investment Management, APAC economist Krishna Bhimwarpu also welcomed to reduce inflation, but said that high tariffs further complicate the approach to Japan.
Bhimavarapu estimated the GDP growth in 2025 year -to -year an average of 0.4% year.
“Even though we expect another growth from BOJ this year, our sentence has weakened,” he said, “As a result, the market concerns about elections can spread to high volatility and this is an important risk.”
Japan goes to elections for an upper house on July 20, Nikki said that Prime Minister Shigru Ishiba’s governing alliance Can lose your majority.
US President Donald Trump said on Wednesday that Japan is also struggling with the concerns about Tram’s tariff. He does not expect a deal with JapanIncreasing the possibility of high tariffs that can hindered development.
Japan’s first quarter GDP For the first time in a yearIn three months, the quarter of 0.2% in the quarter ended on the fall of a fall as exports rapidly fell.
Japan face 25% tariff which will apply on August 1, and currently face 25% levy on automobiles, which is its biggest export to the US.
