Consumer inflation in the Tokyo metropolitan area eased slightly in July, but stubbornly high food prices continue to strain household budgets.

The cost of living in Tokyo cooled for a second month on the back of some temporary factors even as food inflation stayed hot, keeping pressure on Prime Minister Shigeru Ishiba after voter frustration over high prices led to his historic election setback Sunday.

Core consumer inflation in Japan's capital slowed in July but stayed well above the central bank's 2% target in July, data showed on Friday, adding to renewed market expectations for another interest rate hike this year.

Core consumer inflation in Tokyo remained well above the Bank of Japans (BOJ) 2% target in July, reinforcing expectations that another interest rate hike could come later this year. Government data released Friday

Japanese government efforts to moderate inflation are working, though underlying Tokyo price pressures remain elevated. Read more here.