Japan's Inflation Hits 1.8%, Puts September Rate Hike on Radar

The underlying Consumer Price Index (CPI) in Japan rose to 1.8% in July, its highest level since January.

This increase marks a two-tenth rise from June's rate and reinforces expectations of further interest rate hikes by the Bank of Japan.

According to data released by the Ministry of Internal Affairs and Communications, fresh food prices surged by 7% year-on-year in July, while energy costs rose by 0.6%, the largest increase since November 2025.