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Overall nationwide inflation in Japan was up 0.5 percent on year in July, the Ministry of Internal Affairs and Communications said on Friday.
That was shy of forecasts for an annual increase of 0.6 percent and down from 0.7 percent in June.
Core consumer prices, which exclude volatile food prices, gained an annual 0.6 percent - unchanged from the previous month and in line with expectations.
On a monthly basis, both overall and core consumer prices were up a seasonally adjusted 0.1 percent.
