Japan's core consumer inflation accelerated for the fourth straight month in August and tracked comfortably above the central bank's 2% target, data showed on Friday, keeping alive expectations for further interest rate hikes.

Japan’s key inflation gauge accelerated in August for a fourth consecutive month, hours before the Bank of Japan is scheduled to wrap up its latest policy decision meeting.

Japan’s consumer inflation grew at a slightly faster pace in August and stayed well above the Bank of Japan’s 2% target.

The core consumer price index in Japan, which excludes fresh food but includes fuel costs, increased by 2.8% Y/Y in August 2024, posting the highest reading since February and matching market expectations.

Inflation as measured by Japan’s producer prices slowed for the first time in eight months as the cost of energy-related items fell.

Japan's consumer inflation rate likely picked up for the fourth straight month in August, a Reuters poll of 20 economists showed, tracking comfortably above the central bank's 2% target and keeping alive expectations for more rate hikes ahead.