(Bloomberg) -- Japan’s key prices rose at a faster pace in July in the latest indication of the rising cost of living as Bank of Japan Governor Kazuo Ueda prepares to talk about policy developments in parliament following recent market jitters.

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Consumer prices excluding fresh food climbed 2.7% from a year earlier, accelerating from 2.6% in June, according to the ministry of internal affairs Friday. The result matched the consensus estimate.

Stickiness in the core inflation gauge points to the likelihood that the BOJ will continue to consider further interest rate increases. Ueda is set to explain the outlook for monetary policy in parliament this morning at a special hearing following a global market rout earlier this month that was partly triggered by the central bank’s rate hike at the end of July.

Economists expect the BOJ chief to dilute some of the hawkishness he showed last month as he seeks to reassure investors he won’t race ahead with rate hikes or ignore the need to maintain market stability while considering policy.

The uptick in inflation was widely expected given a temporary halt of the government’s subsidy programs.

Another index that strips out energy costs in addition to fresh food prices offered a contrasting view of the deeper inflation trend as it slowed to 1.9% from 2.2%, sliding below the 2% level for the first time since September 2022.

While the pace of this more focused measure of price growth has continued to weaken over the past year, that hasn’t stopped the central bank from raising rates. Still, the slowdown below 2% may strengthen the argument for waiting for more data before raising rates again.

The BOJ has also highlighted the importance of service prices as it examines the inflation trend. They rose 1.4% from a year earlier, slowing from 1.7% in June, according to the report.

(Updates with details from report)

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