Japan core inflation likely slowed to 0%

Japan releases May inflation, employment and household spending data on 26 June. May core inflation (excluding fresh food) is expected to have slowed further to 0% y/y, the same level as in May 2013, shortly after the Bank of Japan (BoJ) launched its current monetary easing programme (QQE). 

May core inflation for Tokyo, already released, slowed to 0.2% y/y from 0.4% in April on contracting energy, housing and durable-goods prices. 

National core inflation is expected to have followed a similar downtrend, reflecting rising concerns about inflation among BoJ board members. It also likely indicates that the BoJ will need to step up its easing efforts later this year.