Japan's Inflation Rises for Third Straight Month, BOJ Hikes Rate Pressure

The Bank of Japan is facing growing pressure to raise interest rates after Japanese consumer price index (CPI) inflation rose in July, with core inflation also advancing but remaining below the central bank's annual target.

CPI inflation grew 1.8% year-on-year in July, data from Statistics Bureau showed on Friday, which is in line with expectations and picked up from the 1.6% seen in the prior month.

A core reading that excludes both fresh food and energy prices rose to 1.9% year-on-year in July from 1.7% in the prior month.

The print marked a third straight month of rising Japanese inflation, as businesses increasingly passed on higher energy and raw material costs to consumers.