Inflation in Tokyo slowed more than expected in September, offering support for the Bank of Japan’s view that prices are set to cool further and thus its ultraeasy policy needs to remain in place.
Consumer prices excluding fresh food rose 2.5% in the capital, decelerating from 2.8% in August largely on the back of falling electricity and gas costs, according to data released by the internal affairs ministry Friday. Economists had forecast a reading of 2.6%.
Behind the steady slowdown is the impact from government subsidies. Prime Minister Fumio Kishida’s decision to extend and expand utility subsidies helped reduce the overall inflation figure by 0.9 percentage point.