Japan’s unemployment rate remains stable at 2.6% in June

Although the unemployment rate was unchanged from May, it missed expectations of 2.5 percent.

According to labor ministry data, the job-to-applicants ratio stood at 1.27 in June, up from 1.25 and 1.24 in the previous month.

In addition, the participation rate stood at 63 per cent in June, beating forecasts of 62.9 per cent and up from 62.7 per cent a month earlier.

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Meanwhile, core consumer prices in Tokyo rose 2.3 percent in July from a year earlier. Government data showed it exceeded the Bank of Japan’s inflation target for the second month. The main consumer price index for Japan’s capital was higher than economists’ average estimate for a 2.2 percent increase.

Earlier on July 28, Masayoshi Amamiya, deputy governor of the Bank of Japan, made it clear that the central bank would not relax its monetary policy to promote more robust wage growth. He said the BoJ’s target of achieving its 2% inflation target in a stable manner is still out of reach.

Japan’s core consumer inflation is well above the BOJ’s 2 percent target, primarily due to higher fuel costs, amplified by the yen’s decline.

As per BoJ forecast, the country’s main consumer price index, excluding volatile fresh foods, is likely to rise 2.3 per cent in the current fiscal, but growth will slow to 1.4 per cent in FY2023.

With Reuters inputs.

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