Japan’s core consumer price index, which excludes fresh food but includes energy, increased 1.7% year-on-year in August 2026, after a 1.8% rise in July. The latest reading slowed from the highest rate in six months, touched a month earlier, and was below the market forecast of 1.8%. Still, the latest reading remained below the Bank of Japan’s 2% target for an eighth straight month, as government fuel subsidies helped offset price pressures from higher oil costs linked to the Middle East conflict.