Japan’s core consumer price index rose 3.3% in June from a year earlier, down from May’s 3.7% increase yet marking the 39th straight month above the Bank of Japan’s 2% goal. The slowdown was partly attributed to the reinstatement of gasoline subsidies, but underlying price pressures remained broad-based. An index that excludes both fresh food and fuel—closely watched by policymakers as a gauge of demand-driven inflation—accelerated to 3.4% from 3.3% in May. Food prices climbed 8.2% while service-sector inflation edged up to 1.5%, suggesting companies are gradually passing higher labour costs to consumers. The figures keep alive expectations that the BOJ could raise interest rates again after lifting its short-term benchmark to 0.5% in January when it ended a decade of aggressive stimulus. The board, which meets on July 30–31, is expected to upgrade its inflation forecasts but must weigh persistent price pressures against economic headwinds from higher U.S. tariffs and weak domestic demand.