The pace of Japan’s consumer inflation stayed well above the Bank of Japan’s target in July even as price growth moderated, supporting market speculation that the central bank will hike its benchmark interest rate again this year.
Consumer prices excluding fresh food rose 3.1% from a year earlier last month, slowing from a 3.3% gain in June, the Ministry of Internal Affairs and Communications reported Friday. The median estimate of economists was for a gain of 3%, with expectations there would be a drag from energy prices after they spiked a year earlier.
A deeper price measure that also strips out energy advanced 3.4%, unchanged from the previous period and matching the consensus estimate, in a sign of underlying inflation momentum.
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