Japan Core Inflation Accelerates Amid Middle East Tensions

Japan's core consumer inflation accelerated in July to 1.8 percent from a year earlier, as companies passed on rising import costs due to a weak yen and tensions in the Middle East.

The data showed that the core consumer price index (CPI) rose by 1.8 percent in July, matching a median forecast. This followed a 1.6 percent rise in June and remained below the Bank of Japan's (BOJ) 2 percent target for a seventh straight month.

An index stripping out volatile fresh food and fuel prices also rose to 1.9 percent from a year earlier after a 1.7 percent gain in June, indicating underlying inflation is picking up pace.

Economists expect core inflation to accelerate above the BOJ's target in the coming months as crude oil prices are expected to rise due to renewed tensions in the Middle East.