BOJ's CSPI Eases Slightly in June, Rate Hike Still Possible

The Bank of Japan's closely watched Corporate Service Price Index (CSPI) rose 3.2% year-on-year in June, a slight easing from the 3.3% increase recorded in May.

Although still elevated, this modest cooling could provide some comfort to policymakers at the BOJ, who are weighing their next monetary policy move.

The CSPI measures prices charged by companies for services such as transportation, leasing, advertising, and information technology. The June figure remains well above the Bank of Japan's 2% inflation target, suggesting that cost-push pressures from labor and energy continue to pass through the supply chain.