Japan's Core CPI Misses Inflation Target for Eighth Straight Month

Japan's core consumer prices rose 1.7 percent in August compared to last year, marking the eighth consecutive month below the 2 percent inflation target set by the Bank of Japan.

The increase in core CPI, excluding volatile fresh food, slowed from a 1.8 percent rise in July due to government subsidies for electricity and gas bills, which led to a decline in energy prices by 0.7 percent on year.

Food prices, however, continued to climb, with a 2.7 percent increase driven by higher costs of potato chips and other snacks. Green tea prices jumped 31.5 percent, the largest rise since 1971, amid a global matcha boom, while rice prices fell 15.7 percent due to increased inventories.

The Bank of Japan is expected to raise its key policy rate to 1.25 percent later in the day, a 31-year high, to contain inflationary pressures from rising oil prices and a weak yen.