Annual core inflation in Japan's capital accelerates in July
EWJ•Tokyo core inflation picks up
Annual core inflation in Japan's capital accelerated in July, data showed on Friday, a sign of broadening price pressures from the Middle East conflict that keeps the central bank on track to consider further raising interest rates.
The Tokyo core consumer price index (CPI), which excludes volatile fresh food costs, rose 1.9% in July, compared with a median market forecast for a 1.7% gain.
It followed a 1.6% rise in June and stayed below the Bank of Japan's 2% target for a sixth straight month.
BOJ expected to hold rates steady
The BOJ is widely expected to keep interest rates steady on Friday after raising them to a 31-year high of 1% in June, as the economy faced mounting inflationary pressure from the Middle East war and a weak yen.
Core gauge excluding fresh food and fuel also rises
An index stripping away the effect of fresh food and fuel, which is closely watched by the BOJ as a better gauge of trend inflation, rose 2.0% in July after a 1.9% gain in June.
