Tokyo Core Inflation Accelerates to 1.9% Amid Rising Food Costs

Japan's capital city Tokyo saw its annual core inflation accelerate in July to 1.9%, surpassing market forecasts of a 1.7% gain, according to data released on Friday.

This uptick in prices is attributed to continued gains in the cost of food and daily necessities, with service-sector inflation remaining steady at 1.1%

The index stripping away fresh food and fuel effects rose by 2.0% in July, a sign that trend inflation remains on track.

Despite these rising costs, the Bank of Japan (BOJ) is expected to keep interest rates steady after raising them to a 31-year high of 1% in June due to mounting inflationary pressure from the Middle East war and a weak yen.