As reported earlier, core inflation in Tokyo—a key leading indicator for nationwide price trends—remained well above the Bank of Japan’s 2% target in July, reinforcing expectations that the BOJ may hike rates again later this year or into 2026.
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Core CPI (excludes fresh food) rose 2.9% y/y in July, just shy of the 3.0% forecast and down slightly from June’s 3.1%.
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The core-core measure (excludes both fresh food and fuel), closely watched by the BOJ as a gauge of domestic price pressures, held steady at 3.1% y/y.
This data will feed into the BOJ’s upcoming July 30–31 policy meeting, where the bank is expected to revise up its inflation forecast. Rates are widely expected to remain on hold for now.
This article was written by Eamonn Sheridan at investinglive.com.