The cost of living in Tokyo increased by the biggest margin in more than two years this month as the impact of surging energy prices prompted another acceleration of inflation, with the government set to put together economic measures in response.

Consumer prices excluding fresh food climbed 0.8% in the capital in March from a year earlier, fueled by higher electricity bills and more expensive natural gas, the internal affairs ministry said Friday. Economists had expected an increase of 0.7%. Price moves in Tokyo are a leading indicator for national inflation.

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