Consumer inflation in the Tokyo metropolitan area accelerated in July and rose more than expected, making it expected that the Bank of Japan will continue to raise interest rates. Consumer prices in Tokyo, excluding fresh food, rose 1.9% year over year, according to government data released on Friday. The increase was higher than the 1.6% increase in June, and also higher than the 1.7% predicted by data provider Quick in a survey of economists. Although the effects of the Middle East conflict and the ensuing rise in oil prices are beginning to gradually show, outsiders generally expect that the Bank of Japan will keep the 1% interest rate unchanged at a two-day meeting that ends later that day in order to evaluate the effects of the June interest rate hike. The Bank of Japan remains committed to tightening monetary policy, but the central bank officials have indicated that they will carefully analyze the situation in the Middle East to determine the timing and pace of further action.

Consumer inflation in the Tokyo metropolitan area accelerated in July and rose more than expected, making it expected that the Bank of Japan will continue to raise interest rates. Consumer prices in Tokyo, excluding fresh food, rose 1.9% year over year, according to government data released on Friday. The increase was higher than the 1.6% increase in June, and also higher than the 1.7% predicted by data provider Quick in a survey of economists. Although the effects of the Middle East conflict and the ensuing rise in oil prices are beginning to gradually show, outsiders generally expect that the Bank of Japan will keep the 1% interest rate unchanged at a two-day meeting that ends later that day in order to evaluate the effects of the June interest rate hike. The Bank of Japan remains committed to tightening monetary policy, but the central bank officials have indicated that they will carefully analyze the situation in the Middle East to determine the timing and pace of further action.