Updated
Updated · Bloomberg · Aug 26
BOJ Inflation Gauge Hits 2.3% in July as September Rate Hike Bets Build
Updated
Updated · Bloomberg · Aug 26

BOJ Inflation Gauge Hits 2.3% in July as September Rate Hike Bets Build

3 articles · Updated · Bloomberg · Aug 26

Summary

  • The Bank of Japan’s underlying consumer-price gauge rose 2.3% in July from a year earlier, staying above the central bank’s 2% target.
  • That reading strips out fresh food and the effects of various government measures, making it a closely watched signal for whether inflation is holding up on its own.
  • The 2.3% figure topped the government’s core inflation measure of 1.8% released last week, which excludes only fresh food.
  • By keeping the BOJ’s preferred inflation gauge above target, the July data reinforced broad market expectations that the central bank could raise rates in September.

Insights

Will the BOJ's potential September rate hike finally rescue the plunging yen or crush Japan's fragile economic recovery?
As service prices rise at record speeds, is Japan's central bank secretly preparing for a much more aggressive rate shock this fall?
Could the end of government energy subsidies expose a hidden inflation crisis that forces the BOJ into unprecedented tightening?