Japan's Core Inflation Rate Stays Steady at 1.8%

Japan's core inflation rate is expected to remain steady at 1.8% year on year in August, according to economists surveyed by Reuters. This would be consistent with the previous month's reading and below the Bank of Japan's 2% target.

Economists pointed out that while higher crude oil and naphtha prices are being passed on to consumers, government subsidies for electricity and gas bills will help curb inflationary pressures.

Wholesale prices in Japan rose by 7.6% year on year in August, driven by rising fuel costs and higher import prices due to the weak yen.