Key Facts
• On August 26, the Bank of Japan released July inflation indicators.
• Trimmed mean inflation rate (2020 base): +2.0% YoY, down from +2.3% in June.
• Weighted median inflation rate: +1.1% YoY, down from +1.4% in June.
• Mode inflation rate: +1.5% YoY, up from +1.4% in June.
• Proportion of rising items: 79.7%, down from 80.5% in June.
• Proportion of falling items: 14.6%, up from 13.6% in June.
• Core CPI (excluding fresh food): +3.1% YoY, down from +3.3% in June.
• Energy prices contributed to the slowdown in core CPI growth.
• Indicators are based on the nationwide Consumer Price Index (CPI) from the Ministry of Internal Affairs and Communications.
Summary
The Bank of Japan’s July inflation indicators revealed a slowdown in the growth of key measures. The trimmed mean inflation rate decreased to +2.0% YoY, while the weighted median dropped to +1.1% YoY. Conversely, the mode inflation rate rose slightly to +1.5% YoY. The proportion of rising items fell to 79.7%, while falling items increased to 14.6%. Core CPI, excluding fresh food, grew by +3.1% YoY, down from +3.3% in June, influenced by declining energy prices. These indicators, derived from the nationwide CPI, provide insights into Japan’s inflation trends.
