BOJ Faces Pressure to Raise Rates Amid Accelerating Inflation

Japan's core consumer inflation accelerated in July, reaching 1.8% year-over-year, matching analysts' median forecast.

This marks a slight increase from June's 1.6% and is still below the Bank of Japan's (BOJ) 2% target for a seventh consecutive month.

The BOJ will consider this data at its next policy meeting on September 17-18, where it is widely expected to raise interest rates to 1.25% from 1%.

Analysts expect core inflation to accelerate above the BOJ's target in the coming months due to renewed tension in the Middle East and a weak yen pushing up crude oil prices.