Tokyo Core Inflation Hits 3-Month High

2026-06-25 23:36 By Chusnul Chotimah 1 min. read

Core consumer prices in Tokyo’s central wards rose 1.6% year-on-year in June 2026, accelerating from 1.3% in the previous month and in line with market expectations.

It was the first acceleration since September last year and marked the fastest increase in three months, a sign of broadening price pressures from the Middle East conflict.

However, inflation remained below the Bank of Japan’s 2% target for a fifth consecutive month, as fuel subsidies and favorable base effects helped limit the impact of higher raw material costs linked to the Middle East conflict.

Meanwhile, CPI, which excludes volatile fresh food and energy costs and is seen by the BoJ as a better gauge of underlying inflation, increased 1.9% year-on-year, up from 1.6% in May.

The BoJ raised interest rates by 25 bps to their highest level since September 1995 at its June meeting, marking the first rate hike since last December, to prevent higher oil prices from fueling inflation.



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Tokyo Core Inflation Hits 3-Month High
Core consumer prices in Tokyo’s central wards rose 1.6% year-on-year in June 2026, accelerating from 1.3% in the previous month and in line with market expectations. It was the first acceleration since September last year and marked the fastest increase in three months, a sign of broadening price pressures from the Middle East conflict. However, inflation remained below the Bank of Japan’s 2% target for a fifth consecutive month, as fuel subsidies and favorable base effects helped limit the impact of higher raw material costs linked to the Middle East conflict. Meanwhile, CPI, which excludes volatile fresh food and energy costs and is seen by the BoJ as a better gauge of underlying inflation, increased 1.9% year-on-year, up from 1.6% in May. The BoJ raised interest rates by 25 bps to their highest level since September 1995 at its June meeting, marking the first rate hike since last December, to prevent higher oil prices from fueling inflation.
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