Apartment rents in Tokyo are rising at the fastest pace in 30 years, in the latest sign for the Bank of Japan that the nation’s inflation trend is spreading deeper through the economy.
Rents in the capital climbed 1.3% from a year earlier in April and May for the largest gains since 1994, according to the internal affairs ministry. While the growth may seem modest compared with core inflation in the capital of 3.6% or soaring rents worldwide, it still suggests the inflation cycle has finally reached rented property in Japan. That’s after decades of stagnation following the bursting of an asset bubble in the early 1990s.
The widening pattern of rising prices and rents backs the case for further interest rate hikes by the central bank.
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