Japan's core consumer prices in June rise 3.3% from a year earlier

Japan's core consumer prices in June rose 3.3 per cent from a year earlier, fuelled by persistently higher prices of rice and other food items, government data showed Friday.

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The key gauge of inflation has now remained at or above the Bank of Japan's 2 per cent target since April 2022, Kyodo News reported.

However, the pace of increase in the nationwide consumer price index, excluding volatile fresh food, slowed for the first time in four months following a 3.7 per cent rise in May due to lower energy costs, the Ministry of Internal Affairs and Communications said.

Core-core CPI, which strips away both energy and fresh food to reflect underlying price trends, climbed 3.4 per cent in June, compared with 3.3 per cent in the previous month, driven by higher costs for mobile phone communications, the ministry said.

Food prices, excluding fresh items, increased 8.2 percent, accelerating from a 7.7 per cent rise in May, pushed up by surging costs of items such as rice, chocolate, and coffee beans.

Meanwhile the Bank of Japan will warn of uncertainty over the impact of US tariffs in a quarterly report due this month, but may offer a less gloomy view on the near-term hit to Japan's economy than three months ago, said three sources familiar with its thinking.

With the BOJ set to keep interest rates steady at 0.5 per cent at its July 30-31 meeting, markets are focusing on how it will describe the growth and price outlook in a quarterly report due after the meeting. They are seeking clues on the timing of the next rate hike.