Japan Core Inflation Rises Again as Energy Costs Bite

Japan's core consumer inflation is expected to rise in July, driven by higher energy costs and food price gains. According to a Reuters poll of 17 economists, the nationwide core consumer price index (CPI) will increase 1.8% from a year earlier.

This would mark a second consecutive month of acceleration, following a 1.6% rise in June. However, it still falls below the Bank of Japan's (BOJ) 2% target.

The BOJ raised interest rates to a 31-year high in June, and some economists believe that another hike is possible as early as next month. Ryosuke Katagi, a market economist at Mizuho Securities, said that the data suggests the impact of the worsening situation in Iran is gradually beginning to feed through to consumer prices.

The wholesale inflation rate remains elevated at 7.2% year-on-year, indicating broadening price pressures.