Tokyo's inflation rate rose in June, which could lead the Bank of Japan to consider raising interest rates as early as July, according to Jinshi. Japan's core consumer price index, excluding fresh food, rose 2.1% year-on-year in June, the Ministry of Internal Affairs and Communications reported on Friday, up from 1.9% in May and exceeding the consensus forecast of 2%. The Tokyo data is a leading indicator for national data to be released in July. Overall, with the key indicator back above the Bank of Japan's 2% target, Friday's report is likely to keep the Bank of Japan moving towards normalizing monetary policy.
