A slight easing in consumer inflation is welcome news for the Japanese central bank, but stubbornly high food prices will be of concern for policymakers.

Japan's annual inflation rate eased to 3.3% in June 2025 from 3.5% in the previous month, marking the lowest reading since last November. Japan's core CPI also rose by 3.3% year-on-year in June 2025,

Japan’s ruling bloc led by the Liberal Democratic party is in danger of losing its majority in both houses of parliament for the first time in 15 years as a backlash led by first-time voters, inflation-strained households and savvy social media campaigners hits traditional politics.

TOKYO] Japan’s key price measure cooled a tad more than expected while remaining well above the Bank of Japan’s (BOJ) target, keeping pressure on Prime Minister Shigeru Ishiba to mollify voters as he heads into Sunday’s (Jul 20) national election.

Japan's core inflation cooled to 3.3% in June, coming down from a 29-month high of 3.7% as food inflation showed signs of easing. The figure — which strips out costs for fresh food — was in line with the 3.3% expected by economists polled by Reuters. Headline inflation in the country dropped to 3.3%, coming down from 3.5% in May.

Japan’s inflation in June gives the Bank of Japan few reasons for immediate cheer. Headline and core inflation decelerated, even as supply-driven food price pressures remained high. Services price inflation, meanwhile, is stubbornly low, indicating that the “wage-price virtuous circle” is still not playing out in the economy.

Rice prices in Japan soared 99.2% in June year-on-year, official data showed today, piling further pressure on Prime Minister Shigeru Ishiba ahead of elections this weekend.

Japan's June core inflation likely slowed but remained above the central bank's 2% target, a Reuters poll showed, keeping it under pressure to resume interest rate hikes as U.S. trade tariffs threaten an already fragile economy.

Japan holds Upper House elections every three years to fill half the chamber’s 248 seats. This year, 124 regular seats and one extra vacancy are being contested.