Japan’s inflation accelerated in July as rising fuel and raw material prices weighed on the country.
Consumer Inflation Index (CPI) beat expectations and rose to 2.6% in July, higher than 2.4% in the previous month and 2.2% forecast by economists. Meanwhile, core consumer inflation accelerated to its fastest in seven-and-a-half years, reaching 2.4% in July. The rise was above 2.1% forecast and 2.2% record in June.
Despite inflation above the central bank’s target of 2% for four straight months, analysts and economists expected the Bank of Japan to keep monetary conditions ultra-loose as a rise in consumer price is still modest compared to other countries.