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Japan's jobless rate remains steady at 2.6% in June

Although the jobless rate was unchanged from the May reading, it missed expectations for 2.5 per cent.. (AP Photo/Eugene Hoshiko) (AP)

Although the jobless rate was unchanged from the May reading it missed expectations for 2.5 per cent.

According to the labour ministry data, the jobs-to-applicants ratio was 1.27 in June, beating forecasts for 1.25 and up from 1.24 in the previous month.

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

ALSO READ: Honda to cut output by up to 30% at Japan plants on supply snag

Meanwhile, the core consumer prices in Tokyo rose 2.3 per cent in July from a year earlier. This overshot the Bank of Japan's inflation target for a second month, government data showed. The core consumer price index for Japan's capital was higher than economists' median estimate for a 2.2 per cent rise.

Earlier on 28 July, Bank of Japan's Deputy Governor Masayoshi Amamiya made it clear that the central bank will not waver in its monetary easing policy to promote more robust wage growth. He noted that BoJ's goal of achieving its 2 percent inflation target in a stable manner is still out of reach.

Amplified by by the yen's decline, largely due to higher fuel costs, Japan's core consumer inflation has topped the BOJ's 2 percent target.

As per BoJ's forecast, country's core consumer price index, excluding volatile fresh foods, is most likely to gain 2.3 per cent in the current fiscal year but the rise will slow to 1.4 percent in fiscal 2023.

With Reuters inputs.

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