Tokyo’s core CPI rose 1.8% year on year in August, exceeding market expectations, while headline CPI reached 1.9%. Markets are focused on whether the Bank of Japan will raise interest rates in September.
Tokyo’s core consumer price index rose 1.8% year on year in August, excluding fresh food, exceeding the median forecast of 1.7%. Headline CPI rose to 1.9%.
CPI including fresh food and fuel rose to 2.0% in August. This is one of the key indicators the Bank of Japan monitors when assessing price trends.
Tokyo’s CPI tends to be released ahead of the national average, giving the Bank of Japan time to review next month’s nationwide data.
Markets increasingly expect a rate hike in September, while forecasts indicate that rates could rise to around 1.5%–1.75% by 2027, including at the lower end of the yield curve.
With the yen remaining weak, rising import costs and inflationary pressure could make it more difficult for the Bank of Japan to respond.