Japan - June Tokyo CPI

Headline CPI in Tokyo for June fell back to 2.3% YoY from 2.4% in May. That was because of energy prices; excluding those and CPI inflation was higher in June, though core only accelerated by 0.1ppts.

Overall, and despite the weakness of the JPY, there are a few signs that inflation momentum is waning. This doesn't mean that core CPI won't rise a bit more quickly in the next couple of months - yesterday's Tankan shows there still is some upwards pressure. And the JPY weakness will likely keep a floor under $JPY for the time being. But without a new driver, it is feeling like inflation is likely to peak in the next 3M or so.