BOJ on Track as Japan's Core Inflation Holds Firm at 2.0%

Japan's core inflation remained steady at 2.0% in July, meeting market expectations and keeping the Bank of Japan (BOJ) on track for further interest rate hikes.

The data shows that inflation is sustained by price increases in services and manufactured goods, despite moderation in energy costs.

Analysts say this gives the BOJ flexibility to proceed cautiously with rate hikes, as the steady but not accelerating inflation trend points to a gradual cooling of underlying demand-pull inflation.