Consumer inflation in Tokyo unexpectedly held steady on the effects of temporary subsidies, in data that back the Bank of Japan’s cautious approach to raising its benchmark interest rate without derailing it from its upward path.
Consumer prices excluding fresh food rose 2.5% in September from a year earlier in the capital, according to the Ministry of Internal Affairs and Communications Friday. The median economist estimate was for a 2.8% advance in a Bloomberg survey.
The unexpected steadying of the main gauge sends a fresh reminder about the volatility of data as government measures meant to help consumers cope with soaring costs of living swing the results. For that reason, one dataset alone isn’t likely to derail the BOJ from its rate-hike path.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.