Inflation in the Tokyo area rose at a faster pace, supporting the case for the Bank of Japan to keep raising interest rates gradually and giving the yen a boost.
Consumer prices excluding fresh food gained 2.8% in October from a year earlier in the capital, the internal affairs ministry said Friday, with the main driver behind the acceleration being water charges. The median economist estimate in a survey was for a 2.6% increase after the gauge rose 2.5% in September.
The pace of price gains has stayed at or above the BOJ’s 2% target for three and a half years, though BOJ Gov. Kazuo Ueda maintains that the underlying trend is still some way from reaching that goal. In the latest month, Tokyo inflation barring fresh food and energy gained 2.8%, picking up from 2.5% in the previous month. Overall inflation also registered 2.8% growth.
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