Inflation in Tokyo has unexpectedly gained renewed upward momentum, pointing to a stronger than thought underlying price trend as the Bank of Japan prepares to release its latest inflation projections at Kazuo Ueda’s first monetary policy meeting as governor.
Consumer prices excluding fresh food rose 3.5% in the capital in April, picking up speed from 3.2% in the previous month as processed food prices continued to strengthen, according to data released by the internal affairs ministry on Friday. Economists had expected the reading to match its pace in March, after two months of slowing down.
Inflation in Tokyo is a leading indicator of the nationwide trend.