TOKYO (dpa-AFX) - Inflation in Japan's capital accelerated in June, signaling broadening price pressures, official data showed Friday.
Excluding fresh food, consumer prices rose at a pace of 1.6 percent after climbing 1.3 percent in May, the Ministry of Internal Affairs and Communications reported. At the same time, headline inflation rose to 1.7 percent in June from 1.4 percent in May.
Excluding fresh food and energy, inflation increased to 1.9 percent from 1.6 percent.
ING economist Min Joo Kang said second-round effects are likely to become more visible and push core inflation higher.
With core prices likely to accelerate going forward, ING brought forward Bank of Japan's rate hike call to October from December.
The economist expects an additional 25 basis point hike in the second quarter of 2027, with the terminal rate is expected to reach 1.75 percent by the end of the first half of 2027.
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