Financial News: Japan Inflation Eases To 3.1%

Japan Inflation Eases To 3.1%

08/22/2025 - 04:12:00 (RTTNews)

(RTTNews) - Japan's inflation softened further in July but continued to remain above the 2 percent target, data from the Ministry of Internal Affairs and Communications showed Friday.

Core inflation that excludes fresh food cost eased to 3.1 percent in July from 3.3 percent in June. Meanwhile, economists had expected inflation to remain stable at 3.3 percent.

Moreover, this was the weakest inflation since February, when prices rose 3.0 percent.

The headline inflation stood at an 8-month low of 3.1 percent in July, down from 3.3 percent.

Meanwhile, excluding fresh food and energy, inflation held steady at 3.4 percent.

Despite the slowdown, elevated underlying inflation will force policymakers to strengthen calls for further interest rate hikes.

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