Home›Forex›Central Banks›Tokyo CPI core beats forecasts, supporting a more hawk…

Tokyo CPI core beats forecasts, supporting a more hawkish BoJ outlook

Tokyo’s core-core inflation, excluding both fresh food and energy, rose to 2.0% year over year, signaling broader underlying price pressure before the BoJ’s policy decision.

Reported · Written up by our desk · Central Banks

Tokyo inflation data showed underlying price pressures strengthening, according to Action Forex, ahead of the Bank of Japan’s policy decision later today. The report said headline consumer inflation rose to 2.0% year over year from 1.7%, while core CPI accelerated to 1.9% from 1.6%, beating the expected 1.8%.

Action Forex also highlighted that the core-core measure, which excludes both fresh food and energy, edged up from 1.9% to 2.0%, suggesting inflation gains are spreading beyond volatile components. Service-related prices continued to contribute, with dining out, rents, transportation, and overseas package tours listed among the notable drivers.

On a month over month, headline CPI increased 0.4% on a seasonally adjusted basis, while both core and core-core measures rose 0.3%. Action Forex noted that a sharp decline in childcare fees weighed on the miscellaneous category, but it reflected policy-related factors rather than weakening underlying inflation.

While policymakers are widely expected to keep the policy rate unchanged at 1.00%, the stronger inflation figures are likely to reinforce expectations that another rate hike could arrive as early as October, Action Forex said.

More like this

Sources