# Japan's Core Inflation Rises in June Higher oil prices drive inflation. - **Source:** [US Top News and Analysis](https://brifing.si/source/635540e9-943e-450d-ae52-ae0bfe3b67eb) - **Published:** 2026-07-24 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/01c1aa24-1e16-4d01-a536-937603579327 ## Inflation Rise in Japan Japan's core inflation reached 1.6% in June. This marks the first increase since March and aligns with economists' expectations. Core inflation excludes fresh food prices. ## Impact of Energy Prices Energy prices fell by just 0.1% year-on-year in June, compared to a 2.5% drop in May. Government subsidies are mitigating the rise in energy costs, but businesses face higher expenses. ## Producer Price Index The producer price index rose to 7.1% in June, the highest level since March 2023. Rising energy prices are increasing production costs. ## Surge in Oil Imports Japan's oil imports surged by over 59% in value year-on-year. The country imports more than 87% of its energy needs. ## Weak Yen's Impact The Japanese yen hovered around the 163 level on Wednesday. A weak yen is driving up import costs and increasing inflation risks. ## Central Bank's Stance The Bank of Japan remains vigilant against inflation risks. A weak yen and rising fuel prices could lead to faster-than-expected interest rate hikes. ## Sources covering this story - https://www.cnbc.com/2026/07/24/japan-cpi-june-inflation-oil-prices-yen.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._