October's Tokyo consumer data matched market expectations, with core inflation rising 2.6 per cent year-on-year. While the central bank is anticipated to hold borrowing costs steady at its upcoming meeting, officials are expected to signal a ongoing commitment to future tightening. Last month, policymakers lifted the benchmark rate to a 31-year high to prevent an inflation overshoot. The governor has emphasized a strategic shift toward actively curbing underlying price gains.
Key points
Tokyo inflation data serves as a critical leading indicator pointing to persistent price…: Tokyo inflation data serves as a critical leading indicator pointing to persistent price pressures across the broader Japanese economy.
The central bank is projected to keep policy unchanged at its next decision while signali…: The central bank is projected to keep policy unchanged at its next decision while signaling future rate hikes.
The governor has shifted the monetary authority's primary focus toward containing underly…: The governor has shifted the monetary authority's primary focus toward containing underlying inflation through potential borrowing cost adjustments.
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TOKYO, Oct 30 : Annual core inflation in Japan's capital well exceeded the central bank's 2 per cent target in October, data showed on Friday, highlighting mounting price pressure and cementing the case for further interest rate hikes.
The data came ahead of the Bank of Japan's policy announcement later on Friday. While the central bank is expected to keep policy steady, it is likely to stress its resolve to continue raising interest rates to prevent an inflation overshoot.
The core consumer price index, which includes prices of fuel but not fresh food, in Tokyo rose 2.6 per cent in October from the same month a year earlier, government data showed, matching a median market forecast. It followed a 2.7 per cent rise in September.
An index stripping away the effect of volatile fresh food and fuel prices, which is closely watched by the BOJ as a more accurate gauge of trend inflation, rose 2.6 per cent in October after a 2.9 per cent gain in September.
The readings for Tokyo, seen as leading indicators of nationwide price trends, underscore…
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