The reference inflation in Japan, which excludes the effect of fresh food prices, accelerated in July to 1.8% year-on-year, two tenths higher than in June and marking the highest increase since January, according to data released by the Ministry of Internal Affairs and Communications.
This advance of the reference CPI in July reinforces expectations that the Bank of Japan will undertake a new interest rate hike at the monetary policy meeting scheduled for September 17 and 18, after raising the cost of money to 1% last June.
On the other hand, the general inflation of the Asian country stood at 1.9% year-on-year in the seventh month of the year, compared to the 1.6% recorded in June and practically in line with the price stability target set by the Bank of Japan.
The core inflation index, which in addition to fresh food also excludes energy, also advanced two tenths in July, to 1.9%.
In July, fresh food prices increased by 7% year-on-year, compared to the 3.9% increase observed in June, their largest rise since March 2025, while energy rose by 0.6% after having decreased by 0.4% the previous month, the largest increase since November 2025.