Japanese inflation rises again... and markets await the Bank of Japan's move

Inflation in Japan rose in July, with the core consumer price index climbing to 1.8% year-on-year from 1.6% in June, in line with expectations. Core inflation, excluding food and energy, also rose to 1.9%, while headline inflation climbed to 1.9%.

This marks the third consecutive month of accelerating inflation, driven by rising energy and raw material costs, with companies passing some of these increases on to consumers.

The continued rise in prices is increasing pressure on the Bank of Japan to raise interest rates, with expectations of a move in September or October.