Core consumer inflation in Tokyo, considered a leading indicator of nationwide trends, unexpectedly accelerated in October — a sign of broadening price pressures that may keep alive expectations of near-term end to ultralow interest rates.
The data reinforces expectations the Bank of Japan (BOJ) will revise up its inflation forecasts when it produces fresh quarterly projections at next week's policy meeting.
The Tokyo core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, rose 2.7% in October from a year earlier, government data showed on Friday, exceeding market forecasts for a 2.5% gain.