US, Japan Inflation Sticky at Near 3% in August

US inflation data for August showed a Consumer Price Index (CPI) increase of 2.9% year-over-year, slightly higher than July's 2.7%, with core CPI steady at 3.1%. Monthly CPI rose 0.4%, driven by food price increases and shelter costs, while energy prices were mixed. Bank of America warned that tariffs continue to contribute to inflationary pressures, particularly in household goods, and expect inflation to remain sticky in the near term. Meanwhile, Japan's wholesale inflation accelerated to 2.7% year-over-year in August, propelled by a 5% rise in food and beverage prices, despite some relief from lower utility bills due to government subsidies. The Bank of Japan, having ended its ultra-accommodative policy and raised rates earlier this year, remains cautious about further tightening, mindful of risks from U.S. tariffs and global trade tensions. Market participants are closely watching the BOJ's upcoming September meeting for signals on potential rate hikes amid persistent inflationary pressures.