Japan’s CPI dropped -0.1% MoM in June, easing the annual inflation rate from 3.5% YoY to 3.3% YoY, the lowest since November 2024.

• CPI (less fresh food) was unchanged on a monthly basis causing the annual rate to slow to 3.3% YoY, down from 3.7% YoY previously and in line with expectations.
• Core CPI was also unchanged and remained at 1.6% YoY for the fourth straight month.
• The fuel & light category dropped -1.0% MoM, pushing annual inflation down to 3.4% YoY, the lowest since October 2024. The energy segment alone was down -2.1% MoM.
• Furniture & household goods inflation eased to 2.7% YoY, the lowest since April 2024, with durable goods prices down -0.2 MoM in June.