Bloomberg's latest article on Friday (June 28) stated that against the backdrop of rising energy prices and higher than expected growth in industrial output in May, inflation in Tokyo has rebounded in June, which may prompt the Bank of Japan to consider raising interest rates as early as July.

According to data released by Japan on Friday, the core consumer price index (CPI) in Tokyo, excluding fresh food, rose at an annual rate of 2.1% in June, exceeding May's 1.9% and also exceeding market expectations of 2%.

Tokyo's data is the leading indicator of national inflation data to be released in July.

Another set of data shows that Japan's industrial output increased by 2.8% in May compared to April, higher than the general expectation of 2%, due to automakers such as Daihatsu Motor Co. resuming production after a safety certification scandal caused some production lines to shut down.

The weak yen helped support the price increase in June. The Japanese yen has been under pressure, and during the Asian market on Friday, the yen exchange rate briefly fell below 161 yen to the US dollar, setting a new low in 38 years.

Yuichi Kodama, Chief Economist at Meiji Yasuda Research Institute, said, "If the yen exchange rate remains near its current level, the Bank of Japan is likely to raise interest rates in July."

Inflation data is influenced by policy measures in both directions. The government's gradual cancellation of public utility subsidies and introduction of renewable energy taxes have provided a bottom line for prices, and the capital's education support program has also played a certain role. An inflation indicator that does not include energy and fresh food has accelerated to 1.8%, reversing the trend after nine consecutive months of deceleration.

Overall, with key indicators returning above the Bank of Japan's 2% target and new signs of health in the manufacturing industry, Friday's data may lead the Bank of Japan to continue moving towards monetary policy normalization.

Bloomberg economist Taro Kimura said, "Tokyo's hot June CPI report is not the last data released by the Bank of Japan before its July meeting, but it provides convincing evidence that the Bank of Japan can continue to raise interest rates - this is our basic scenario assumption."

At this month's policy meeting, the Bank of Japan kept interest rates unchanged and expressed interest in reducing bond purchases. Some market participants question whether the Bank of Japan can launch two major policy measures at the same meeting.

The recent remarks of Bank of Japan Governor Kazuo Ueda have indeed hinted at the possibility of policy adjustments, indicating a more open attitude towards interest rate hikes.

At the Bank of Japan's monetary policy meeting that ended on June 14, Yoshio Ueda revealed that the Bank of Japan "may significantly reduce the number of treasury bond purchased" after the July interest meeting.

Uchida Kazuo stated in Congress last week that if data proves necessary, there is a high possibility of raising policy interest rates next month.

These statements have made the market highly concerned about the July interest rate meeting, with a premonition that it will be a turning point for the Bank of Japan's monetary policy.

According to a Bloomberg survey earlier this week, one-third of Bank of Japan observers expect to raise interest rates in July.