May data shows softer price pressures in Japan’s capital, undershooting forecasts and prior readings across key inflation gauges.
Tokyo’s headline Consumer Price Index rose 1.4% year-over-year in May, down from 1.5% in April, as price pressures moderated. The decline marks the second consecutive monthly easing in the capital’s inflation rate.
Core inflation measures also softened: CPI excluding fresh food climbed 1.3% YoY, missing the 1.5% consensus and April’s print. The ex-fresh food and energy gauge increased 1.6%, down from 1.9% previously. Both readings fell short of expectations, signaling weaker underlying price trends.
The yen showed limited reaction, with USD/JPY edging 0.17% lower to 159.25 in early trade. The data reinforces expectations that the Bank of Japan may delay further policy tightening amid subdued inflation.