Japan Inflation Surges Amid Weakening Yen

Japan's inflation has picked up pace, rising to 1.6% in June from last year, according to data released by the Ministry of Internal Affairs and Communications.

The consumer price index excluding fresh food, a key measure closely watched by the Bank of Japan (BOJ), matched economists' forecasts and marked a crucial turnaround after two months of declines.

Energy costs drove the acceleration in inflation, although they still fell due to government subsidies. Other contributors included durable goods and medical treatment fees.

The yen's relentless slide has created an additional concern for policymakers, with the currency hitting ¥164 per dollar overnight, its weakest level since 1986.