Tokyo Core Inflation Hits 6-Month High of 1.9%

2026-07-30 23:35 By Chusnul Chotimah 1 min. read

Core consumer prices in Tokyo’s central wards increased 1.9% yoy in July 2026, following a 1.6% rise in the previous month and exceeding expectations of 1.7%.

It was the second consecutive month of acceleration and marked the fastest increase since January, signaling broadening price pressures stemming from the Middle East conflict.

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

Meanwhile, CPI, which excludes volatile fresh food and energy costs and is viewed by the BoJ as a better gauge of underlying inflation, increased 2.0% yoy, up from 1.9% in June, marking the highest reading in four months.

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, in an effort to prevent higher oil prices from fueling inflation.



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Tokyo Core Inflation Hits 6-Month High of 1.9%
Core consumer prices in Tokyo’s central wards increased 1.9% yoy in July 2026, following a 1.6% rise in the previous month and exceeding expectations of 1.7%. It was the second consecutive month of acceleration and marked the fastest increase since January, signaling broadening price pressures stemming from the Middle East conflict. However, inflation remained below the Bank of Japan’s 2% target for a sixth consecutive month, as fuel subsidies and favorable base effects helped limit the impact of higher raw material costs linked to the conflict. Meanwhile, CPI, which excludes volatile fresh food and energy costs and is viewed by the BoJ as a better gauge of underlying inflation, increased 2.0% yoy, up from 1.9% in June, marking the highest reading in four months. 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, in an effort to prevent higher oil prices from fueling inflation.
2026-07-30
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.
2026-06-25
Tokyo Core Inflation Lowest in Over 4 Years
Core consumer prices in Tokyo’s central wards rose 1.3% year-on-year in May 2026, slowing from 1.5% in the previous month and coming in softer than market expectations of 1.5%. The reading marked the slowest pace since March 2022, indicating further moderation in price momentum. Inflation remained below the Bank of Japan’s 2% target for a fourth consecutive month, as fuel subsidies and favorable base effects helped limit the impact of higher raw material costs linked to the Middle East conflict. However, policymakers are growing more concerned about the possibility that higher oil prices could boost underlying inflation in the country. Companies might start passing higher costs on to consumers, as years of sustained inflationary pressures have made businesses more comfortable raising prices.
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