BOJ Keeps Rate Hike Option Open as Japan Inflation Picks Up

Japan's inflation rate has picked up pace for the first time in three months, according to recent data from the Ministry of Internal Affairs and Communications. The consumer price index excluding fresh food rose by 1.6% in June compared to a year earlier.

This increase is closely watched by the Bank of Japan (BOJ) as it considers another interest-rate hike this year. The BOJ's focus on underlying inflation is reflected in the measure that excludes both fresh food and energy, which also climbed by 1.7%.

The acceleration was driven by slower declines in energy costs, thanks to government subsidies, as well as increases in durable goods and medical treatment fees.