Inflation in Tokyo ran slightly hotter than economists were expecting in July, an outcome that casts some doubt on the Bank of Japan’s view that price growth will slow below its target in the coming months just as Gov. Kazuo Ueda and his board meets to decide on policy.
Consumer prices excluding fresh food rose 3% in the capital, decelerating from last month’s 3.2% on the back of lower energy prices, the internal affairs ministry said Friday. The core CPI, which removes energy, unexpectedly accelerated to the fastest pace in more than 40 years, advancing by 4%.
The BOJ’s board will discuss whether to tweak yield curve control policy to let long-term interest rates rise above its 0.5% cap by "a certain degree,” the Nikkei reported, without attribution.