In Japan, the core inflation indicator was recorded as 2.4 percent in July by the Central Bank.

The inflation momentum is increasing in Japan, one of the countries that implement ultra-loose monetary policy along with China and Turkey.

Consumer prices excluding unprocessed fresh foods increased 2.4 percent in July compared to the same period of the previous year, exceeding the Bank of Japan’s 2 percent target. This was also the expectation of economists participating in the Bloomberg survey. In June, an increase of 2.2 percent was recorded in this indicator.

Headline inflation was also in line with expectations, with an annual rate of 2.6 percent in July. Excluding energy and fresh food, inflation was 1.2 percent, exceeding expectations.

Evaluating the inflation data, economists stated that, for now, it is unlikely that the Bank of Japan will take a step back in monetary expansion due to the rise in inflation.

Bank of Japan Governor Haruhiko Kuroda has repeatedly emphasized that the commodity-driven rise in inflation is temporary. Daiwa Securities Economist Mari Iwashita said that if core inflation reaches 3 percent, market pressure on the Bank of Japan may increase.