Tokyo core CPI misses forecasts in May, complicating case for BOJ June rate hike
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Tokyo core CPI rose 1.3% y/y in May, missing the 1.5% forecast and extending a six-month slowdown, as fuel and education subsidies offset rising import costs, complicating the BOJ's case for a June rate hike. Summary: Tokyo core CPI, excluding fresh food, rose 1.3% y/y in May, be
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4 itemsTokyo CPI misses forecast sharply, giving BoJ room to hold despite June hike signals
The desk views the recent Tokyo CPI data as a critical factor that may delay the Bank of Japan's (BoJ) anticipated rate hike in June. The core-core CPI missed expectations significantly, printing at 1.9% versus a forecast of 2.3%, providing the BoJ with a rationale to maintain its current stance despite prior hawkish signals. Per the full note [source], this data shift is likely to prompt markets to reassess their June hike pricing, reflecting the ongoing tension between inflationary pressures and the need for cautious monetary policy.
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