Japan’s Inflation Holds Above BOJ Target, Price Pressures Broaden

Japan’s Inflation Holds Above BOJ Target, Price Pressures Broaden
Shoppers wearing protective face masks, following an outbreak of COVID-19, at a supermarket in Tokyo on March 27, 2020. Issei Kato/Reuters
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TOKYO—Japan’s core consumer inflation accelerated in July to its fastest in seven-and-a-half years, driven by fuel and raw material prices and adding to the costs of living for households yet to see significant wage gains.

In a sign of broadening price pressure, the so-called “core core” index that strips away not just the impact of volatile fresh food but energy prices, also rose in July at the fastest annual pace in more than six years.