According to Jin10 data, consumer inflation in the Tokyo metropolitan area rose in May, with core CPI increasing by 3.6% year-on-year, higher than the market expectation of 3.5%. Tokyo's CPI data is seen as an early indicator of national trends in Japan.
The Bank of Japan recently revised its price forecasts, expecting U.S. tariffs to weigh on economic growth. The Bank of Japan has become more cautious about the impact of food inflation on overall consumer prices, particularly focusing on rising rice prices.
Bank of Japan Governor Kazuo Ueda stated that although food inflation is expected to ease, close attention should be paid to the impact of rising food prices on Japan's potential inflation.