Japan's inflation continued to rise above the central bank's 2% target in July, driven by higher fuel and raw material prices, adding to the cost of living for households that have yet to see a significant pay rise.
The latest, the core consumer price index (CPI) which excludes fresh food prices, was reported to have risen 2.4% last month from a year earlier, also a 7-and-a-half-year high.
This followed the 2.2% increase recorded in June and marked the fourth consecutive month of increases in which core consumer inflation exceeded the Bank of Japan's (BOJ) target.
Analysts believe that this latest increase may not prompt the central bank to withdraw its monetary easing for now.
In fact, Governor Haruhiko Kuroda has also previously repeatedly said that the current commodity-driven inflation is temporary and that stronger wage growth is needed to meet the central bank's targets.
Japan continues to lag behind other advanced economies that have aggressively raised interest rates to lower inflation.
Looking at the reaction of the yen, the currency was not affected following the publication of this data but instead traded lower against the strengthening US dollar.
