Japan Inflation Rises on Middle East Conflict, Weak Yen

Japan's core inflation accelerated in June to 1.6 percent, exceeding market expectations and marking five consecutive months below the Bank of Japan's two-percent target.

The internal affairs ministry attributed the increase to higher energy costs, driven by the ongoing Middle East conflict and a weak yen.

A falling yen has made imports like oil more expensive for resource-poor Japan, further pushing up prices.

Prime Minister Sanae Takaichi has implemented fuel and energy subsidies to shield consumers from rising oil prices.