Japan Core Inflation Slows Below BoJ Target for Eighth Month

Japan's core inflation rate slowed in August to 1.7% year-over-year, below market forecasts of 1.8%. This is the eighth straight month that the rate has remained below the Bank of Japan's 2% target. The latest reading is also a decrease from the previous month's high of 1.8%, which was the highest in six months.

The core consumer price index, which excludes fresh food but includes energy, remains affected by government fuel subsidies that have helped offset higher oil prices linked to the Middle East conflict. The index excluding volatile fresh food and fuel stood at 1.9% year-over-year, its fastest increase in three months.