---
title: "Tokyo inflation eases to 1.3% as Nikkei stays above 65,700"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/288116781.md"
description: "Tokyo's core CPI eased to 1.3% in May, down from 1.5%, as subsidies offset energy and education costs. Meanwhile, the Nikkei 225 stayed above 65,700, supported by retail sales, industrial output, and jobs data beating expectations. The Bank of Japan faces pressure to raise rates in July, balancing subdued inflation against risks from oil prices and a weak yen."
datetime: "2026-05-29T21:01:06.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/288116781.md)
  - [en](https://longbridge.com/en/news/288116781.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/288116781.md)
---

# Tokyo inflation eases to 1.3% as Nikkei stays above 65,700

Inflation cools again: Tokyo's core CPI rose 1.3% in May, down from April’s 1.5%, with subsidies offsetting energy and education costs. Markets stay strong: Nikkei 225 remained above 65,700 as retail sales, industrial output, and jobs data all beat expectations. Policy crossroads ahead: The BOJ faces pressure to hike rates in July, weighing subdued inflation against risks from oil prices and a weak yen.

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