Inflation in Tokyo re-accelerated for the second time in three months in June, an outcome that supports expectations the central bank will raise its inflation forecast next month.
Consumer prices excluding fresh food increased 3.2% in the capital from a year earlier, rising at a slightly faster pace than last month’s revised figures, according to data released by the internal affairs ministry on Friday.
The smaller drag from electricity prices was the main cause of the acceleration, following a government decision to allow utilities to raise charges from this month. But the price growth was slower than economists had forecast.