Tokyo core-core CPI hits 1.9% as Middle East price pressures spread beyond energy
From the original
The core-core at 1.9% against a 1.8% forecast is the most significant number in the release for BOJ watchers, as it is the measure the board treats as the clearest read on underlying trend inflation. A move from 1.6% to 1.9% in a single month, combined with wholesale inflation al
Related speeches
4 itemsTokyo core CPI misses forecasts in May, complicating case for BOJ June rate hike
Japan: Tokyo area April CPI headline 1.5% y/y (expected 1.7%, prior 1.4%)
The desk interprets the latest Tokyo CPI data as a clear signal that the Bank of Japan (BoJ) is unlikely to accelerate its rate hike plans. Per the full note from Eamonn Sheridan, the April 2026 headline CPI came in at 1.5% year-on-year, missing expectations of 1.6% and reflecting a marginal increase from the prior 1.4%. This subdued inflation data, particularly the core CPI at 1.5%—the slowest since March 2022—provides the BoJ with the necessary leeway to maintain its accommodative stance despite previous signals suggesting a potential hike in June.