Core consumer price indicators for Tokyo’s 23 wards in August were released, showing year-on-year increases in the series excluding factors such as energy subsidies, as well as in the trimmed mean and low-volatility-item CPI. The findings suggest that underlying inflation has strengthened and could support the Bank of Japan’s decision to raise rates sooner.
An estimate based on August data for core consumer price indicators in Tokyo’s 23 wards was released. This report explains that it calculated indicators including the series excluding special factors, the trimmed mean, the weighted median, and the mode, using the values the Bank of Japan uses to analyze the relationship between wages and prices.
In August, the series excluding fresh food and special factors widened by 0.2–0.3 percentage points from July, while the increases in the trimmed mean and low-volatility-item CPI also widened. The report points out that the weighted median showed particularly strong growth due to the impact of rents in Tokyo’s 23 wards.
Nationwide, low-volatility-item CPI increased, and acceleration was confirmed in many underlying inflation indicators even after excluding the increase in Tokyo’s 23 wards. These developments are regarded as factors supporting an earlier Bank of Japan rate hike.
This material does not directly indicate the Bank of Japan’s policy direction, but it presents an assessment that underlying inflation has strengthened, drawing attention to future trends in the indicators.