Japanese inflation highest in five years.

Japan's core CPI, which excludes food, rose for the first time in 14 months in June and increased a greater-than-expected 0.4%, a level that was also the highest for five years. However, the CPI reading that excludes food and energy dropped 0.2%, which, along with the weak dollar and tepid earnings, helped to send Japanese shares 3% lower. What the country needs is rising wages so that consumers can afford the higher prices.