Japan’s Inflation in July Beat Expectations as Fuel and Raw Material Prices Soar

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.