The inflation rate in Tokyo has accelerated for the second month in a row, making the Bank of Japan expected to raise interest rates again in the coming months, but the market generally expects its committee to keep interest rates unchanged on Friday. According to data released by Japan's Ministry of Internal Affairs and Communications on Friday, consumer prices excluding fresh food rose 1.9% year on year in July, compared to 1.8% expected by economists surveyed by Bloomberg. An indicator that excludes fresh food and energy rose 2%. The Bank of Japan is closely watching this as an indicator to measure core inflation, and overall consumer prices have also risen 2%. The Tokyo CPI is regarded as the leading indicator of price trends across the country. Taken together, these data released a few hours before the central bank decided on the policy will provide a basis for the authorities to continue to push for interest rate hikes, and the main question is how to grasp the pace of interest rate hikes. The Bank of Japan Committee raised the benchmark interest rate to about 1% last month — the highest level since 1995 — and is expected to keep it unchanged later today.

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