More on Japanese CPI: Energy prices boost inflation

|By:, SA News Editor

The 0.7% rise in July core inflation, which includes oil products but not fresh food, was the highest since November 2008.

However, the majority of the gains came from energy, says strategist Shuji Tonouchi, adding that the "upward pressure on energy prices is likely to start to slow in the coming months."

Core-core CPI, which excludes energy, fell 0.1% on year in July vs -0.2% in June.

"Things are basically on track for the BOJ, but I would not get overly optimistic on prices just yet," Tonouchi says.

Industrial production +3.2% on month in July vs -3.1% in June and consensus of +3.9%.

Manufacturing PMI 52.2 in August vs 50.7 in July. (PR)

Overall household spending +0.1% on year in July vs -0.4% in June and consensus of +0.3%.

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