Tokyo Inflation Rises 1.8%, Boosts Case for September BOJ Hike

Tokyo's core consumer prices rose 1.8% in August from a year earlier, surpassing market expectations and inching closer to the Bank of Japan's 2% target.

The data suggests that broadening price pressure tied to the conflict in the Middle East is driving inflation in the capital, with an underlying trend inflation measure rising 2.0% in August.

This development could strengthen the case for a September interest rate hike by the Bank of Japan, although some market participants remain cautious due to the uncertainty surrounding global events.