Japan's core inflation cooled to 3.3% in June, coming down from a 29-month high of 3.7% as rice inflation showed signs of easing. The figure — which strips out costs for fresh food — was in line with the 3.3% expected by economists polled by Reuters. Headline inflation in the country dropped to 3.3%, coming down from 3.5% in May.

The report on producer prices adds to a mixed picture for inflation as the economy adjusts to the imposition of import tariffs.

The figure for June marks the fastest rate of inflation, which measures how quickly prices are rising, since January 2024.

A number of factors, including a lack of significant gains in auto prices, are masking the extent of the shift.

A weaker U.S. dollar may fundamentally benefit some areas of the stock market, but “it could also potentially drive higher import costs, pressure consumers and flow through to inflation,” according to a note Thursday from Morgan Stanley Wealth Management.