Inflation in Tokyo decelerated for the first time in more than a year as ramped-up government subsidies masked a strengthening price trend that will keep scrutiny on the Bank of Japan’s policy path under the likely leadership of Kazuo Ueda.
Consumer prices excluding fresh food rose 3.3% from a year earlier in the capital in February, slowing a full percentage point from the previous month and in line with economists’ forecast.
A slew of measures from Prime Minister Fumio Kishida’s administration is holding down an overall Tokyo inflation figure that would otherwise be around 4.5%.