The pace of inflation in Tokyo accelerated from the previous month to the fastest pace in two years, data showed on Friday, supporting the Bank of Japan’s rate-hike stance that is now complicated by uncertainty stemming from U.S. tariff measures.
Consumer prices excluding fresh food gained 3.4% in April from a year earlier, as a mixture of impacts from last year’s school fee cuts and higher food and energy costs accelerated inflation, according to an internal affairs ministry report released on Friday. The result beat the median economist forecast of 3.2%. Overall inflation in Tokyo quickened to 3.5% from 2.9% in March.
The latest reading of Tokyo’s inflation, a leading indicator for national price gains, comes as uncertainty over U.S. President Donald Trump’s tariff campaign weighs on the BOJ’s plan to further scale back monetary easing with gradual rate hikes.
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