Japan's Core Inflation Hits 1.7% in June, Keeping BOJ on Watch

Japan's core inflation rate rose to 1.7% in June, surpassing the previous month's 1.5%, according to data released by the Ministry of Internal Affairs and Communications on July 19, 2025.

The increase in core consumer prices, which exclude fresh food, reflects broad-based price hikes across various categories, including processed food and durable goods.

The steady uptick in inflation keeps the Bank of Japan (BOJ) on a cautious path toward normalizing its ultra-loose monetary policy, with Governor Kazuo Ueda emphasizing that interest rates will only be raised once inflation is sustainably driven by domestic demand and wage growth.