The Japanese government maintained its assessment that the economy is recovering gradually for a fifth consecutive month in its July report, while flagging the need to monitor Middle East developments. The government revised its description of corporate goods prices to say they are rising, and maintained that business investment, private consumption, and exports continue to show signs of recovery.
Tokyo's core consumer price index rose 1.9 percent year-on-year in July, exceeding market expectations but remaining below the Bank of Japan's 2 percent target for a sixth straight month. The central bank raised its policy rate to 1 percent in June, the highest level in 31 years.
The Cabinet Office reported that the July consumer sentiment index rose to 34.9, prompting an upgrade in its underlying assessment for the first time in five months. Meanwhile, a Teikoku Databank survey showed a sharp increase in food items expected to see price hikes from August onward. The job offers-to-applicants ratio ticked up to 1.18 in June, with new postings rising for the first time in 14 months.