Oil prices turn lower as Bessent says U.S. may have Iran deal "today or tomorrow"

Investing.com-- Consumer inflation in Japan’s capital rose in July, with core prices coming in sight of the Bank of Japan’s target range amid high energy prices and rising import costs due to a weak yen.

Core consumer price index inflation– which excludes volatile fresh food prices– rose to 1.9% year-on-year in July, government data showed on Friday. The print was a shade above expectations of 1.8% and accelerated from the 1.6% seen in June.

A core reading that excludes both fresh food and energy prices rose to 2.0% in July from 1.9% in the prior month. The print is closely watched by the BOJ as a gauge of underlying inflation.

Get more breaking updates on Japan and the BOJ by subscribing to InvestingPro-- now at 60% off

Headline CPI inflation rose to 2.0% in July from 1.7% in June.

Friday’s data showed Japanese inflation continuing to pick up amid support from elevated energy prices, especially as a resurgence in U.S.-Iran hostilities disrupted oil and gas supplies from the Middle East.

A weak yen exacerbated this trend, given that Japan relies heavily on food and energy imports. While government subsidies had so far shielded consumers from higher energy prices, producer inflation rose sharply in recent months, heralding a spillover into consumer prices.

The yen hit its weakest level in 40 years in July, but recovered sharply this week amid suspected government intervention in currency markets.

Tokyo inflation data usually acts as a bellwether for nationwide inflation, given the region’s economic prevalence.

Friday’s data also came just hours before the conclusion of a BOJ meeting, with the central bank widely expected to leave rates steady. But increasingly sticky inflation gives the BOJ more impetus to maintain its hawkish bias and to hike rates further in the coming months.

The BOJ raised rates by 25 basis points to 1.0% in June, and warned that sticky inflation and a weak yen were likely to invite more hikes in the coming months.

Markets don't take breaks—but you can.

While you're enjoying summer, the market keeps moving. The good news? ProPicks AI never stops working—analyzing thousands of stocks using 100+ financial metrics to surface winning opportunities for you.
Our Tech Titans strategy has more than doubled the S&P 500 since launching in Nov 2023, catching winners like Siemens Energy (+231.5%) and Sandisk (+189%) before the crowd.
Invest smarter this summer—without sacrificing your downtime.