Asia: Inflation in Japan picks up – rate hike in September increasingly likely
High import costs and a weak yen are affecting consumers. Experts expect the monetary authorities to raise the key interest rate from one percent to 1.25 percent.
Japan's core inflation rate accelerated to 1.8% in July, matching analyst expectations, from 1.6% in June. The increase is attributed to companies passing on higher import costs to consumers due to a weak yen and the impact of the US-Israel war against Iran. The data, released on Friday, may influence the Bank of Japan's next interest rate decision on September 17-18, with experts predicting a potential rate hike to 1.25% from 1%.
Despite the rise, core inflation remains below the central bank's 2% target for the seventh consecutive month.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
