Japan's Core Inflation Accelerates Amid Weak Yen

The Bank of Japan is keeping a close eye on inflation as core inflation in Japan accelerated to 1.8 percent in July, up from 1.6 percent in June. This reading was in line with market expectations, and excluding food and energy prices, inflation was 1.9 percent.

A weak yen has contributed to the increase in prices, making imports more expensive for resource-poor Japan. Prime Minister Sanae Takaichi has implemented fuel and energy subsidies to shield consumers from the sharp rise in oil prices due to the Middle East conflict.