Japan CPI increased 0.2% MoM and 3.1% YoY in July 2025, up from 3.3% YoY in June and the lowest since November 2024.

• CPI less fresh food, the BoJ's preferred inflation measure, increased 0.2% MoM and 3.1% YoY (vs 3.0% YoY expected), also decelerating from 3.3% YoY in the previous month.
• Core inflation was 1.6% YoY for the fifth month in a row after a 0.2% MoM increase in July.
• Food prices increased 0.4% MoM, the largest increase since January, but fresh food prices dropped -0.2% MoM, the 6th straight month of declines.
• Energy prices eased -0.4% MoM, and on an annual basis, were down -0.3% YoY, the first decline for that rate since March 2024.
• The culture & recreation segment increased 0.8% MoM this month after a -1.0% MoM increase previously, led by recreational services up 1.4% MoM, partially offset by a -1.2% MoM drop in recreational durable goods.
• The furniture & household goods segment increased 0.2% MoM and was up 2.5% YoY, the smallest annual gain for the segment since April 2024 and the second lowest since April 2022.