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Tokyo Core Inflation Accelerates, Reinforcing BOJ Pressure

Tokyo, 31 July 2026 – Core inflation in Japan’s capital accelerated in July, adding evidence that price pressure remains persistent ahead of broader national data. Tokyo’s reading is closely watched as an early indicator and strengthens the case for the Bank of Japan to retain a tightening bias.

The composition of inflation matters as much as the headline. Food and energy can produce sharp monthly moves, while sustained increases in services and wages would suggest a deeper change in domestic price-setting behaviour.

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