Economic Buzz: Japan inflation cools to 3.1% in July, lowest since Nov 2024

Japan?s annual inflation eased to 3.1% in July 2025 from 3.3% in June, the lowest since November 2024. Electricity prices fell for the first time in over a year, while gas was flat and education costs continued to decline. However, food inflation accelerated to 7.6%, the sharpest since February, led by a surge in rice prices of nearly 91%. Core inflation also stood at 3.1%, a five-month low but still well above the BOJ?s 2% target, keeping policy tightening in focus.

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