Tokyo Inflation Hits 4%, Pointing to Stronger-Than-Thought Trend

  • Processed food and energy push up inflation in the capital
  • Impact from Kishida package to start kicking in from February
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Tokyo’s inflation outpaced forecasts to hit 4% for the first time since 1982, suggesting the underlying price trend is stronger than expected by economists, a factor that could further fuel speculation the Bank of Japan will adjust policy again.

Consumer prices excluding fresh food climbed 4% in the capital in December as food and energy costs continued to mount and a majority of tracked items got more expensive, according to the ministry of internal affairs Tuesday. Economists had forecast a 3.8% rise.