Core inflation in Japan rose in June and increased again after hitting a four-year low, indicating a new cycle of pressure on prices. The index, which excludes fresh food, advanced 1,6% in the period, in line with market projections.
The data marks the first increase since March and signals that the recent rise in oil prices is beginning to spread through the Japanese economy. Headline inflation also rose, going from 1,5% in May to 1,7% in June, reinforcing the acceleration movement.
On the other hand, the so-called “core-core” inflation, which excludes fresh food and energy, slowed to 1,7%. This is the lowest level since August 2022, showing that part of the domestic pressures still remains moderate.
Energy prices saw a slight decline of 0,1% year-over-year, after a steeper drop of 2,5% in May. Government subsidies helped contain costs for consumers, while fuels, electricity and water remained stable, interrupting a six-month sequence of declines.
Despite the relief for consumers, companies continue to face high costs. The producer price index reached 7,1% in June, the highest level since March 2023, reflecting the higher cost of energy inputs and raw materials.
External pressure remains a central factor. The crisis in the Middle East affected the global energy supply, while the historic depreciation of the yen increased import costs. Recent trade data show that the value of Japan’s oil imports grew more than 59% compared to the previous year.
With more than 87% of energy dependent on imports, the country remains vulnerable to external shocks. The yen, traded near multi-decade lows, increased concerns about imported inflation and the impact on consumption.
In the financial market, the Nikkei 225 index was stable before falling 2,14% after the release of the data. Meanwhile, the Bank of Japan remains attentive to inflationary risks, assessing the possibility of faster adjustments in interest rates if pressures persist.
This scenario is also being closely followed by global investors, including participants in the cryptocurrency market, who monitor macroeconomic indicators to assess liquidity and the behavior of digital assets.