Consumer inflation in Japan accelerated slightly in June, paving the way for further interest rate hikes by the country's central bank. According to government data released on Friday, prices for core consumers excluding fresh food in Japan rose 1.6% in June, up from 1.4% in May. The data is in line with average expectations from a survey of economists. Economists say oil prices and food costs are still key factors affecting the overall price trend. They also said that these prices may continue to be affected by a combination of factors, including the situation in the Middle East, weak yen, government energy subsidies, rising packaging costs, and planned tax cuts on food sales. The Bank of Japan raised its policy interest rate to 1% last month, a 31-year high. This move is because the bank's policy committee is increasingly concerned that rising oil prices will push Japan's basic inflation rate above the central bank's 2% target. Bank of Japan policymakers have said that the effects of the Middle East conflict and the subsequent surge in oil prices may begin to be felt in the summer. The central bank is scheduled to release the latest economic growth and inflation forecasts next week at the same time as announcing interest rate decisions.

Consumer inflation in Japan accelerated slightly in June, paving the way for further interest rate hikes by the country's central bank. According to government data released on Friday, prices for core consumers excluding fresh food in Japan rose 1.6% in June, up from 1.4% in May. The data is in line with average expectations from a survey of economists. Economists say oil prices and food costs are still key factors affecting the overall price trend. They also said that these prices may continue to be affected by a combination of factors, including the situation in the Middle East, weak yen, government energy subsidies, rising packaging costs, and planned tax cuts on food sales. The Bank of Japan raised its policy interest rate to 1% last month, a 31-year high. This move is because the bank's policy committee is increasingly concerned that rising oil prices will push Japan's basic inflation rate above the central bank's 2% target. Bank of Japan policymakers have said that the effects of the Middle East conflict and the subsequent surge in oil prices may begin to be felt in the summer. The central bank is scheduled to release the latest economic growth and inflation forecasts next week at the same time as announcing interest rate decisions.