MNI BRIEF: Japan Aug Trimmed Mean Rises 2.0%; July 2.0%

Japan’s trimmed mean measure of underlying inflation rose 2.0% y/y in August, unchanged from July, staying above 2% for the eighth straight month, Bank of Japan data showed Wednesday. 

The figure highlights a slowing pace of cost pass-through, driven by higher rice prices and labour costs.

The release follows Friday’s data showing annual core CPI rose 2.7% y/y in August, down from 3.1% in July, but above the BOJ’s 2% target for the 41st consecutive month. 

The mode, or the most common inflation rate in the distribution, was 1.1% in August, also unchanged from July.

The BOJ has said underlying CPI inflation is moving in a 1.5%-2.0% range, still below its 2% target. Governor Kazuo Ueda said Friday that inflation remains “a little below” target but is gradually approaching it. (See MNI BOJ WATCH: Ueda Says Rate Hikes Will Come; No Timing Hints) 

The Bank in July noted underlying inflation would be temporarily sluggish due to slowing economic momentum.