Japan CPI for May, headline 3.2% y/y vs. 3.5% prior

The excluding food and energy is holding above 4%. This is the closest to US 'core' inflation . At 4.3% its another 40+ year high.

Underlying price pressures in Japan remain above the headline rate. As I posted earlier the Bank of Japan are insisting that the CPI will begin to fall from around September/October:

• Japanese CPI data not expected to provide much clarity on potential for a July BOJ move

The 'transitory' argument didn't work out well at all for other DM central banks. On Thursday the Bank of England ratcheted up their bank rate by 50bp, even after multiple rises in the months preceding.

The Bank of Japan next meet on July 27 and 28. Once again there are murmurs in markets about changes to its YCC policy , despite numerous disappointments at recent meetings.