The cost of living in Tokyo rose at the fastest pace in almost three decades in April as the impact of soaring energy prices became clearer, an outcome that complicates the Bank of Japan’s messaging on inflation and the need for continued stimulus.
Consumer prices excluding fresh food in the capital climbed 1.9% from a year ago, the internal affairs ministry said Friday. Barring the impact of sales tax hikes in 1997 and 2014, it marked the fastest pace of gains since December 1992.
The gauge jumped after the drag on the price index from sharp cellphone fee cuts a year ago started to drop out of calculations. Analysts had forecast prices to rise 1.8%.