MNI BRIEF: BOJ: Japan's July Trimmed Mean Rises 2.0% Vs. 2.3%

Japan’s trimmed mean measure of underlying inflation rose 2.0% y/y in July, down from 2.3% in June but above 2% for a seventh straight month, suggesting a slowing pass-through of cost increases from high rice prices and labour costs, Bank of Japan data showed Tuesday.

The release followed Friday’s report that core consumer inflation rose 3.1% y/y in July, marking 40 consecutive months above the BOJ’s 2% target.

The mode, or most common rate in the distribution, eased to 1.1% in July from 1.4% in June.

The BOJ has said underlying CPI inflation is moving in a 1.5%-2.0% range, still below its 2% target, and expects it to soften temporarily as economic growth slows. However, it maintains that underlying inflation will likely align with the price stability target in the second half of the projection period to March 2028.