Japan’s inflation picks up, backing BOJ’s case for rate hike
The consumer price index excluding fresh food rose 1.8% in July from a year earlier, picking up from a 1.6% advance in the previous month.
Japan's inflation rate quickened for the second consecutive month in July, keeping the Bank of Japan on schedule for a potential interest rate increase in the near term, according to market predictions. The consumer price index, excluding fresh food, increased by 1.8% in July compared to a year ago, a rise from the 1.6% gain in the previous month, the Ministry of Internal Affairs and Communications reported on Friday.
This acceleration marked the fastest pace since January and aligned with the median forecast of economists. The core inflation index, which excludes both fresh food and energy, also rose by 1.9%, indicating underlying inflation concerns. Overall, the Consumer Price Index (CPI) climbed by 1.9%, underlining the upward pressure on prices.
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