Japan's Corporate Services Price Index
- measures the prices of services traded among companies
For May comes in at 1.8% y/y
- expected 1.5%, prior 1.7%
Earlier data from Japan:
Japan CPI data for May: Headline 2.5% y/y (expected 2.9%)
- The core measure (excluding food) came in at 2.1%, second month in a row above 2%.
- the CPI excl food and energy, which is closest to the US measure of core CPI came in 0.8%
The Bank of Japan currently views the cost-push inflation in Japan (rising energy costs a key input) as temporary. Rising living costs do pose a risk to consumption, though, especially slow wage growth.
Governor Kuroda has repeatedly said the central bank will keep monetary policy ultra-loose until robust domestic demand and strong wage growth become key drivers of inflation.
