DEK: Tokyo's core Consumer Price Index (CPI) rose 1.3% year-over-year in May, falling short of the 1.5% forecast and complicating the Bank of Japan's (BOJ) case for a June rate hike. CATEGORY: Mercado Financeiro & Forex KEY_FACTS: - Tokyo core CPI rose 1.3% y/y in May, missing the 1.5% forecast. - This marks a sixth consecutive month of slowdown.
The Tokyo core CPI, which excludes fresh food, increased by 1.3% year-over-year in May, according to the Japan Statistics Bureau. This growth rate is below the 1.5% forecast and April's 1.5%, indicating a continued slowdown for the sixth consecutive month. The Tokyo headline CPI came in at 1.4% year-over-year, against an expected 1.6% and April's 1.5%. The slowdown in CPI is attributed to fuel and education subsidies offsetting rising import costs. This development complicates the Bank of Japan's (BOJ) case for a June rate hike, as the central bank typically considers inflation rates when making monetary policy decisions.