Japan's Inflation Rate Hits 1.8%, Boosting BOJ Hike Case

The Bank of Japan's case for raising interest rates has strengthened after Japan's inflation data showed a core rate of 1.8% in August 2026, up from 1.6% in July.

This acceleration in Japan's core inflation gives the BOJ more justification to hike interest rates from their current near-zero levels.

The Nikkei 225 fell 0.33% to 66,000 in response to the inflation data, as rate-sensitive sectors in Japan came under pressure.