According to CoinMeta, as reported by InvestingLive, on August 28, 2026, inflation data from the Tokyo region of Japan became a focal point of attention. In July, the core CPI (excluding fresh food) accelerated to 1.90%, higher than 1.60% in June, reaching a six-month high and exceeding market expectations. The data showed that in July 2026, core consumer prices rose by 1.9% year-on-year, accelerating from 1.6% in June and marking the fastest growth rate since January. Notably, the core core indicator (the inflation measurement preferred by the Bank of Japan) rose by 2.0% year-on-year, higher than 1.9% in June and reaching the highest level in four months. Nevertheless, overall inflation remained below the Bank of Japan's target of 2% due to fuel subsidies and a favorable base effect that mitigated some of the pressure from rising raw material costs. Market expectations for inflation in August were further strengthened, as July's national CPI data showed that core inflation met expectations at 1.8%. Analysts referred to this phenomenon as "naphtha inflation," meaning that rising oil prices and raw material costs were transmitted to everyday consumer goods through the depreciation of the yen and high oil prices. Market expectations for the Bank of Japan to raise interest rates to 1.25% in September have risen to nearly 80%.