In Japan, rising consumer prices may raise expectations of an interest rate rise
July 26, 2024
Consumer prices in the Japanese capital rose 2.2% in July compared with the same period a year earlier, data showed on Friday. The increase accelerated for the third consecutive month, maintaining market expectations of a rate hike in the near future. The data came ahead of the Bank of Japan’s two-day rate-setting meeting, which ends on Wednesday, where the bank’s board will discuss the possibility of a rate hike and detail how it plans to reduce its massive bond purchases. The rise in the consumer price index (CPI), which excludes volatile fresh food costs, was in line with market forecasts and followed a 2.1% increase in June.