Japan’s core consumer price index rose 2.0% year-on-year in July, up from 1.7% in June, the fastest pace in several months and in line with market expectations, data from the Ministry of Internal Affairs and Communications showed. The core gauge, which excludes fresh food but includes energy, accelerated for a second straight month as electricity and gas subsidies were phased out, while core-core inflation excluding food and energy stayed above the Bank of Japan’s 2% target, pointing to broader demand-driven price growth. The reading adds pressure on the BOJ after it ended negative rates and began tapering bond purchases, with Governor Kazuo Ueda having said policy will be adjusted if inflation moves sustainably toward 2%. Markets are watching for another possible rate hike later this year, though recent yen strength could cool import prices. Households still face prices rising faster than wages as temporary relief fades, and the next BOJ meeting in September 2024 is likely to draw close scrutiny.