Japan’s CPI print averts deflation fears, National core CPI rises 0.1% y/y in May

FXStreet (Mumbai) - Consumer price pressures continued to ease last month in Japan, raising the risk of the economy sinking into deflation again, and putting further pressure on the central bank to increase policy support.

Japan's national core CPI rose 0.1% year-on-year in May, according to the Statistics Bureau, easing from 0.3% in the previous month, but coming in slightly stronger than the market forecast of no change in the price index.

While, Tokyo's more timely CPI gauge rose 0.1% in June, as forecast, after rising 0.2% in May.

While a separate report released on Friday showed household spending rising 4.8% year-on-year in June, and unemployment holding at a record low 3.3% in May.