Inflation in Tokyo sharply eased in August on government utility subsidies, while still staying well above the Bank of Japan’s target, keeping it on a path toward further interest rate hikes.
Consumer prices excluding fresh food rose 2.5% in the capital this month compared with a year earlier, versus a 2.9% clip last month, the internal affairs ministry said on Friday. The slowest pace of gains since March matched economists’ forecast.
A deeper price indicator that also strips out energy prices climbed 3%, dipping from 3.1% and matching forecasts, suggesting that beyond the impact of government subsidies, inflation remained relatively unchanged.
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