Tokyo’s core consumer price index (CPI), a key gauge of underlying inflation in Japan’s capital, showed signs of easing in December but stayed above the Bank of Japan’s 2% inflation target.
According to government data released Friday, Tokyo core CPI—which excludes volatile fresh food prices—rose 2.3% year-on-year, slightly below market expectations of 2.5% and down from 2.8% in November.
The “core-core” CPI, excluding both fresh food and volatile fuel costs, also eased to a 2.6% increase year-on-year, compared with 2.8% in November. Meanwhile, headline CPI inflation remained steady at 2.7%.
This inflation reading arrives as the Bank of Japan has shifted toward a tighter monetary policy stance, recently raising interest rates to 0.75%, the highest level in three decades, and signaling readiness for further hikes if wage growth and economic conditions support it.
Given Tokyo CPI’s role as a bellwether for national inflation, December’s data suggests inflationary pressures in Japan remain persistent despite recent moderation.
Sources: Investing
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