According to CoinMeta, Japan's industrial output increased by 0.1% month-on-month in July, better than the expected decline of 0.7%. Retail sales also grew by 2.4% month-on-month and 4% year-on-year, both significantly exceeding expectations. Manufacturers expect industrial output to increase by 6.4% in August and then fall by 4.2% in September. The extent to which industrial output data exceeded expectations has alleviated some of the short-term downside risks associated with the market's assessment of Japan's economic growth prospects. This is of significant importance regarding whether domestic demand can continue to be a driving force for inflation, a topic currently under discussion by the Bank of Japan.