Japan’s capital sees core inflation reach the central bank’s 2% target, reinforcing expectations for policy normalization.
Tokyo’s core consumer price index, excluding fresh food, rose 2.0% year-on-year in July, matching the Bank of Japan’s inflation target. The print exceeded the 1.7% consensus forecast and marked an increase from June’s 1.6% reading.
Headline inflation accelerated to 2.0% from 1.7% in June, while the core measure excluding both food and energy climbed to 2.0% from 1.9%. The data reflects persistent price pressures in the world’s third-largest economy.
The figures may strengthen expectations for the Bank of Japan to phase out ultra-loose monetary policy, though officials have signaled caution amid uneven wage growth.