Japan's Inflation Dilemma: The Oil Price Shadow Japan's core inflation rate rose to 1. 6% in June, marking a first increase since March.
This development comes despite government efforts to cushion higher oil prices with subsidies, which have had little impact on businesses. The producer price index hit a 7.
1% high in June, reflecting the rising costs for companies. The yen's persistent weakness against major currencies has pushed up import costs, making it difficult for Japan to maintain economic growth momentum.