Tokyo May core CPI unexpectedly slowed to 1.3% YoY, the slowest in four years
and below consensus 1.5%, marking a sixth consecutive monthly deceleration, the
Statistics Bureau said. The BOJ's preferred core‑core CPI (ex fresh food and
energy) rose 1.6% YoY. That gauge — adjusted to remove subsidy distortions and
last year’s volatile food base effects — is seen as a cleaner measure of
underlying price trends. The softer Tokyo inflation complicates BANK OF JAPAN
policy communication and leaves the timing of any near-term rate move uncertain;
officials may still seek to justify tightening as early as next month.
