According to CoinMeta, a indicator of potential inflation in Japan is still above the central bank’s target level of 2%, supporting the widespread market expectation that the Bank of Japan (BOJ) will raise interest rates in September. On Tuesday, the BOJ stated that the consumer price index, after excluding fresh food and the impact of various government measures, rose by 2.3% year-on-year in July. In contrast, the core inflation indicator (also excluding fresh food) announced by the Japanese government last week rose by 1.8% year-on-year. These data are part of a new set of price indicators introduced by BOJ Governor Haruhiko Kuroda in March this year, aimed at more closely monitoring potential inflation trends. The figures further indicate that potential inflationary pressures remain strong. Affected by rising energy costs due to conflicts in the Middle East, businesses are facing increased costs and are passing on these higher input costs to consumers. Current market pricing suggests that the probability of the BOJ raising interest rates in September is about 80%.