Tokyo core CPI rose 1.8% YoY in August, narrowing the gap to the Bank of Japan's
2% target. Analysts say price pressure from the Middle East conflict is
broadening; wholesale prices jumped 7.2% YoY in July, indicating passthrough
could lift consumer inflation with a lag. The Bank of Japan raised its policy
rate to 1% in June — a 31-year high — and held in July while issuing its most
hawkish statements to date.
