Core Insights - Japan's core Consumer Price Index (CPI) excluding fresh food rose by 3.1% year-on-year to 111.6 in July, marking the eighth consecutive month of increases above 3% [1] - The primary driver of rising prices in Japan is the significant increase in food prices, with notable rises in grains, snacks, meat, and beverages; the price of ordinary japonica rice surged by 89.9% year-on-year [1] - Other contributing factors include a year-on-year increase in mobile communication fees by 11.8% and hotel accommodation fees by 6.0% [1] - The CPI growth rate in July showed a slight decline compared to the previous month, attributed to government subsidies on gasoline prices, summer electricity, and gas fees, which helped to mitigate price increases [1] - Economists suggest that due to factors such as the year-on-year decline in real wages, Japan may require more time to achieve a positive cycle between wage growth and inflation [1]