Japan Inflation Hits 2-Year High Amid Energy Price Pressures

Japan's core consumer inflation likely accelerated in July to 1.8% from June's 1.6%, according to a Reuters poll of economists, driven by higher energy costs and food price gains.

The Bank of Japan is expected to consider an interest rate hike in September following this data, which shows the nationwide core consumer price index (CPI), excluding fresh food prices but including energy items, rose faster for a second straight month.

Economists polled by Reuters expect this trend to continue, with 17 respondents forecasting July's inflation rate at 1.8% year-over-year, compared to June's 1.6%. This increase indicates cost pressures from the ongoing war in the Middle East on energy prices.