Tokyo, 24 July 2026 – Japan’s consumer inflation accelerated in June, reinforcing expectations that the Bank of Japan will continue raising interest rates as higher energy costs and a historically weak yen threaten to intensify price pressures.

The nationwide core consumer price index, which excludes volatile fresh food prices, rose 1.6% year-on-year in June, accelerating from 1.4% in May and matching market expectations. Although the reading remained below the central bank’s 2% target for a fifth consecutive month, the renewed pickup indicated that inflationary pressure has not disappeared. Reuters

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Kenji Yamamoto
Kenji Yamamoto is a Senior Fellow at The Ledger Asia, where he explores the critical nexus of Asian international relations, economic development, and environmental sustainability. With extensive experience in cross-border policy analysis, Kenji provides a unique perspective on how diplomatic alliances and green energy transitions drive long-term growth across the Asia-Pacific.
Previously an advisor for regional development banks, he specializes in sustainable infrastructure and the circular economy’s role in modernizing emerging markets. At The Ledger Asia, Kenji’s deep-dive reports help readers navigate the complex balance between rapid industrialization and the global imperative for climate resilience and corporate responsibility.

Japan Inflation Accelerates, Keeping BOJ on Course for Further Rate Hikes

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