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.

Japanese Prime Minister Shigeru Ishiba on Monday stressed the need to establish a common understanding among parties on the pros and cons of cutting the country's sales tax rate.

The Japanese Yen (JPY) pushes higher against the US Dollar (USD) on Monday as the Greenback softens amid falling US Treasury yields and cautious market sentiment. While the Yen is getting a lift after Sunday’s upper house election, political uncertainty in Japan following the ruling coalition’s loss of majority could limit further gains.

Japanese Prime Minister Shigeru Ishiba clung on Monday even after his coalition suffered what he called an "extremely regrettable" election result, as painful new US tariffs loom.

Japan's core inflation slowed in June but stayed above the central bank's 2% target for well over three years, highlighting lingering price pressures that back market expectations for further interest rate rises.

Rice prices in Japan soared 99.2 percent in June year-on-year, official data showed Friday, piling further pressure on Prime Minister Shigeru Ishiba ahead of elections this weekend.Overall, Japan's core inflation rate slowed to 3.

Voters angry at inflation turned to other parties, notably the "Japanese first" Sanseito, which made strong gains with its "anti-globalist" drive reminiscent of US President Donald Trump's agenda.

The election Sunday is about inflation that has been running between 3.5 percent and 4 percent.