BOJ Core Inflation Holds Above 2% Despite Deceleration

The Bank of Japan released its July core consumer price indicators, showing that core CPI excluding fresh food and special factors rose 2.3% year-on-year, decelerating from 2.6% in June but maintaining the 2%+ level for 22 consecutive months.

Core-core CPI, which strips out fresh food, energy, and special factors, accelerated to 2.2% from the prior month.

The nationwide core CPI published by the Ministry of Internal Affairs and Communications rose 1.8%, remaining in the 1% range for a seventh straight month, but once institutional factors are excluded, the underlying inflation trend still exceeds 2%.