Japan's Core Inflation Hits 1.8% Amid Weak Yen

The core inflation rate in Japan has accelerated to 1.8% in July, according to official data released on August 21. This marks an increase from the 1.6% recorded in June and is in line with market expectations.

The internal affairs ministry's reading excludes volatile food prices, but still shows a notable uptick. Excluding both food and energy prices, inflation rose to 1.9%, up from 1.7% in June.

A weak yen has pushed up import costs for Japan, particularly for oil and food. 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.