The GBP/JPY pair rose to 199.50 as Japan’s CPI report raised concerns about the BoJ extending the rate-tightening cycle. Japan’s inflation fell due to weak private spending, while the UK’s weak Retail Sales suggest further inflation softening. The BoJ’s preferred inflation gauge showed a decline in core inflation to 2.4%, indicating uncertainties about future rate hikes. Despite weak UK Retail Sales data, the Pound Sterling remains strong, but households may struggle with higher interest rates, potentially leading to earlier rate cuts by the BoE.