Despite a slowdown in price growth, Japan’s inflation remained above the Bank of Japan’s target in July. This persistence has prompted investors to anticipate another rate hike this year. Government data shows that core consumer prices, excluding fresh food, rose 3.1% compared to last year in July, after a previous jump of 3.3%. Experts had predicted inflation would drop due to decreased energy costs. However, the resilient inflation remains a concern for traders who anticipate continued pressure throughout the year. 60-year highs were also reported in August on the cost of rice and processed foods, with some experts predicting more price increases to come. While the BOJ raised its inflation forecast this summer, most analysts believe it will keep interest rates unchanged at the September meeting. This has sparked a rise in bond yields, fueling anticipation of further monetary tightening in the coming months.