Japan's core inflation rises for the third month in a row in July

The core consumer price index (CPI), which excludes fresh food, rose 2.7 percent year-on-year, slower than the 2.6 percent increase in June.

Japan's core inflation rose for the third straight month in July, remaining at or above the central bank's 2 percent target for the 28th month in a row. The core CPI (excluding fresh food) rose 2.7 percent year-on-year, slower than the 2.6 percent increase in June. However, the “core index” (excluding fresh food and energy) rose 1.9 percent, following a 2.2 percent rise in June.

However, the “core index,” which excludes fresh food and energy costs, rose 1.9 percent in July, after gaining 2.2 percent in June, falling below the key 2 percent mark for the first time since September 2022, domestic media reported.

Kazuo Ueda, governor of the Bank of Japan, which raised the key interest rate to a 15-year high in July and signaled its willingness to further raise borrowing costs, is expected to discuss the July interest rate decision in parliament today.

The end of government subsidies for electricity and gas, which ended in May and were reintroduced in August, continued to be an important factor reflected in the price increase in July.

Fibre2Fashion News Desk (DS)