Japan's Core Inflation Spikes, Bolsters Case for Rate Hike

Japan's core inflation accelerated in July to 1.8% from a year earlier, according to data released on Friday.

This marked a sharp increase from June's 1.6%, and bolstered the case for an interest rate hike by the Bank of Japan (BOJ) at its next policy meeting on September 17-18.

The core consumer price index, which excludes volatile fresh food prices, rose in line with a median forecast.

Analysts expect inflation to accelerate further as companies pass on rising raw material costs and a weak yen pushes up import prices.