The July numbers will be looked at for insights into how inflation is progressing in relation to the central bank's expectations, as markets keep guessing when a rate hike might be coming. Though nationwide inflation stayed above target in June, views are split on how soon the Japanese central bank can raise interest rates again after it decided to end eight years of negative interest rates in March. ING economists expect Tokyo core inflation to rise 2.0% on year, above the central bank's target of 2%. Together with strong wage growth, a recovery in the auto sector, and retail sales, that could pave the way for a 15-basis-point hike at the BOJ's July meeting, they said. --Additional reporting by David Winning, Megumi Fujikawa, Emese Bartha, Paul Vieira and Miriam MukuruWrite to Jessica Fleetham at jessica.fleetham@wsj.com and Fabiana Negrin Ochoa and fabiana.negrinochoa@wsj.com(END) Dow Jones NewswiresJuly 21, 2024 18:14 ET (22:14 GMT)Copyright (c) 2024 Dow Jones & Company, Inc.

Source: Wall Street Journal July 21, 2024 22:26 UTC