Japan's Consumer Price Index Accelerates to 1.6% in June Amid Rising Costs
The Japanese Consumer Price Index (CPI) rose by 1.6% in June, marking the first acceleration in three months. The growth rate expanded by 0.2 percentage points from May's 1.4%, with the composite index excluding fresh food reaching 113.1. This represents the 58th consecutive month of positive readings, but remains below the Bank of Japan's 2% target for the fifth straight month.
The increase in raw material costs triggered by escalating tensions in the Middle East is a key factor behind the acceleration. Housing repair and maintenance costs rose sharply, while gasoline prices saw their decline narrow from 7.0% year-on-year in May to just 0.7% in June.
However, energy prices as a whole fell 0.1% from the previous year. The government's subsidies on gasoline are continuing to cap prices at around 170 yen (approximately $1.04) per liter, but the temporary downward pressure from the tax abolition is now fading.