Japan’s core consumer price index, which excludes fresh food but includes energy, increased 1.8% year-on-year in July 2026, following a 1.6% rise in June. It was the highest core inflation rate since March and was in line with market forecasts of 1.8%. Still, the latest reading remained below the Bank of Japan’s 2% target for a sixth straight month, as government fuel subsidies helped offset price pressures from higher oil costs linked to the Middle East conflict.