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.