Japan's core inflation hits 1.8% in July, BOJ meeting looms
Japan's core inflation rate hit 1.8% in July (up from 1.6% in June), according to new government data.
While that matches what economists expected, it is still not quite at the Bank of Japan's 2% goal, something it has been chasing for months.
With another BOJ meeting set for mid-September, talk is heating up about whether an interest rate hike is finally on the cards.
Japan underlying inflation 1.9% GDP 1.1%
Prices are rising a bit faster under the surface too: when you leave out both fresh food and energy, inflation reached 1.9%.
Higher labor costs in a tight job market are pushing up service costs, and a weaker yen plus possible oil price hikes could make things even pricier soon.
Meanwhile, Japan's economy grew at an annualized 1.1% in the April-June quarter, slower than hoped, with people spending a little less overall.
The BOJ now has to juggle keeping inflation in check without slowing down growth even more.