Japan's Inflation Surges to 2.6%, Raising Prospect of BOJ Rate Hike

Consumer prices continue to climb, driven by higher energy costs and a weak yen, as central bank considers policy changes.

June's core consumer prices rose 2.6% from the previous year, marking the second consecutive month of acceleration.
The Bank of Japan may raise interest rates at its July 30-31 meeting, following a decade of ultra-loose monetary policy.
Higher energy prices, exacerbated by the end of government subsidies, significantly contributed to the inflation rise.
Economists are divided on the timing of the rate hike, with some expecting it in July and others predicting later in the year.
The weak yen has compounded inflationary pressures, increasing the cost of imported goods and straining household budgets.