Tokyo Inflation Accelerates, Signaling Potential BOJ Rate Hike

Rising energy prices and a weak yen drive Tokyo's core inflation to 2.1% in June, surpassing expectations.

Tokyo's core consumer price index rose 2.1% in June, up from 1.9% in May.
Higher energy costs and a weak yen are major contributors to the inflation rise.
Factory output in Japan rebounded in May, with a notable increase in auto production.
The Bank of Japan may consider an interest rate hike in July due to sustained inflation.
Service inflation in Tokyo also increased, reflecting higher labor costs.