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Economists See Japan’s Inflation Hitting at Least 2.1% in April

  • Yen fall to 140 would increase risk of BOJ policy change: BNP
  • Policy implication likely limited for now, Citi economists say

Japan’s key inflation gauge is more likely to top 2% in April following stronger-than-expected price growth in the capital, an outcome that would make it trickier for the Bank of Japan to explain its need to continue with stimulus.

Consumer prices excluding fresh food probably rose by at least 2.1% last month, according to economists at BNP Paribas SA, Citigroup Inc. and Dai-Ichi Life Research Institute, after factoring in a government report Friday showing core inflation in Tokyo hit 1.9% in April. The nationwide data is due on May 20.