Japan's Core Inflation Accelerates to 1.6% in June Amid Weaker Yen

Japan's core consumer inflation rose to 1.6% in June, according to government data released on Wednesday. This increase is the result of a base effect from last year's sharp decline in gasoline prices following government subsidies.

While food inflation eased as rice prices fell, service inflation slowed to 1.2% in June from 1.4% in May despite continued wage growth. Underlying inflation, excluding both fresh food and fuel, rose 1.7% year-on-year, easing from 1.8% in May.

Economists expect inflationary pressures to strengthen later this year due to rising producer prices fueled by higher energy costs and a weaker yen. The Bank of Japan will consider these figures at its upcoming policy meeting, where policymakers are widely expected to leave interest rates unchanged.