Japan's Inflation Steady in August Despite Core Dip

Japanese consumer price index (CPI) inflation remained steady in August at 1.7% year-over-year, while core inflation unexpectedly fell to 1.9%, below expectations of a steady reading.

The BOJ is widely expected to raise interest rates by 25 basis points in its rate decision just hours after the data release.

Despite subsidies on utilities and fuel keeping consumer prices relatively subdued, producer price index (PPI) inflation has soared to an over three-year high, and is expected to spill over into CPI inflation in coming months.