Japan's Core Inflation Surges Amid Weakened Yen

Japan's core inflation rate accelerated to 1.8% in July, according to official data released on Friday. This marks an increase from June's 1.6% and meets market expectations.

The reading excludes volatile food prices and is consistent with forecasts from economists. Excluding both food and energy prices, the inflation rate rose to 1.9%, up from 1.7% in June and in line with consensus projections.

A weak yen has contributed to higher import costs for Japan, particularly for oil and food. Prime Minister Sanae Takaichi has implemented fuel and energy subsidies to mitigate the impact of rising oil prices resulting from the Middle East conflict.