Japan’s core inflation climbed to 1.6% YoY in June, matching forecasts, ahead of the Bank of Japan’s policy meeting next week.
The USD/JPY pair remains steady near 163.90 in early Asian trading, with the Japanese Yen (JPY) lingering at multi-decade lows against the US Dollar (USD). Japan’s National Consumer Price Index (CPI) inflation rose to 1.7% year-over-year in June, up from 1.5% in May, while core CPI increased to 1.6% from 1.4% previously, aligning with market expectations.
This marks the first rise in core inflation since March, though the “core-core” rate, excluding fresh food and energy, dipped to 1.7% from 1.8%, the lowest since August 2022. The data precedes the Bank of Japan’s policy meeting, where rates are widely expected to remain unchanged.
Traders remain focused on potential intervention by Japanese authorities, with Finance Minister Satsuki Katayama reiterating readiness for “appropriate and bold action” if needed. Geopolitical tensions in the Middle East may further support the USD against the JPY.