Japan Faces Interest Rate Hike Pressure Amid Rising Inflation

Japan's economy is under increasing pressure to raise interest rates as inflation continues to rise. In July, the country's annual core inflation rate, which excludes fresh food prices, reached 1.8%, up from 1.6% in June.

This increase was partly due to the Iran war and higher import costs caused by a weak yen. The overall annual inflation rate remained at 1.9%, still below the Bank of Japan's 2% target.

However, rising living costs are causing concern among Japanese citizens, with a recent poll showing that 71% are unhappy with the government's handling of inflation.

Most analysts expect the central bank to raise interest rates when it meets in September, despite the current economic conditions.