Japan’s core consumer inflation likely accelerated in July from the previous month, as faster food price gains and cost pressures on energy from the war in the Middle East pushed prices higher, a Reuters poll of economists showed.
Economic Impact
The nationwide core consumer price index (CPI), which includes energy items but excludes fresh food prices, was expected to rise 1.8% in July from a year earlier, a poll of 17 economists showed, accelerating for a second straight month from 1.6% in June but remaining below the BOJ’s 2% target.
“Overall, the data are likely to suggest that the impact of the worsening situation in Iran is gradually beginning to feed through to consumer prices,” said Ryosuke Katagi, a market economist at Mizuho Securities.
Japan’s annual wholesale inflation remained elevated at 7.2% year-on-year in July, highlighting broadening price pressures.
Beyond inflation concerns, joint Japanese-U.S. efforts to shore up the battered yen two weeks ago have heightened market bets that the BOJ will need to hike rates faster and further, with another move possible as early as next month.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
