Japan August Inflation Slows Ahead of Expected BoJ Rate Hike

Japan's inflation rate slowed down in August, according to official data released on September 18. The core inflation rate, which excludes volatile fresh food prices, fell to 1.7% from 1.8% in July. This is close to the Bank of Japan's (BoJ) target of 2%. Market expectations were for a steady figure, but the actual reading was lower than predicted.

The slower pace of inflation can be attributed to government support for gasoline and electricity fees. The BoJ is expected to raise interest rates at its upcoming meeting on September 19, which would be a significant move in monetary policy normalization.