Japan’s inflation came in as expected in June, data showed on Friday, boosted by the consumption tax hike that took effect in April. Nationwide core consumer price index (CPI) rose 3.3 percent in June year on year, in line with a Reuters estimate and against the 3.4 percent uptick in May.
The core Tokyo CPI for July, a leading indicator, climbed an annual 2.8 percent, slightly better than a 2.7 percent rise forecast by Reuters and following the 2.8 percent gain in June.
The Japanese yen was little changed against the dollar on the news, staying around 101.75 after hitting a one-week high of 101.82 overnight. Japan raised its sales tax to 8 percent from 5 percent in April, in a bid to reduce its hefty debt pile, which is one of the highest among the world’s industrialized countries.