Japan's Inflation Rises on Higher Energy Costs and Food Prices

Japan's core consumer inflation likely accelerated in July to 1.8% from a year earlier, driven by higher energy costs and food price gains.

The data, based on a Reuters poll of economists, suggests that the impact of the Middle East conflict is starting to be felt at the consumer level.

Ryosuke Katagi, a market economist at Mizuho Securities, noted that 'the data are likely to suggest that the impact of the worsening situation in Iran is gradually beginning to feed through to consumer prices.'

The Bank of Japan's core inflation target is 2%, and while this latest reading remains below that threshold, it follows two consecutive months of acceleration.