Japan Inflation Slows In June

(RTTNews) - Japan's inflation softened more than expected in June but continued to remain above the 2 percent target, data from the Ministry of Internal Affairs and Communications showed Friday.

Core inflation that excludes fresh food cost eased to 3.3 percent in June from 3.7 percent in May, which was the highest in two years.

Meanwhile, excluding fresh food and fuel, inflation rose marginally to 3.4 percent from 3.3 percent in the previous month.

Despite the slowdown, underlying inflation remained elevated strengthening calls for further interest rate hikes.

The Bank of Japan had raised its policy rate by a quarter-point in January to the current 0.5 percent. The next monetary policy announcement is due on July 31.