Tokyo Inflation Rises Above 4%, Prompting Yen Gains
- Higher than expected price growth prompt gains in yen
- BOJ faces risk that inflation outlook will need reassessment
Shoppers inside the Matsuzakaya Ueno department store in Tokyo, Japan.
Photographer: Noriko Hayashi/BloombergThis article is for subscribers only.
Inflation in Tokyo continued to outpace expectations, jumping above 4% and underscoring how price gains may be stronger than the Bank of Japan’s current view.
Consumer prices excluding fresh food rose 4.3% in the capital in January, accelerating from December’s revised figure of 3.9%, according to the ministry of internal affairs Friday. The reading was the strongest since 1981 and beat analyst estimates, rising further beyond the central bank’s 2% target. Hotel prices were the biggest driver behind the acceleration.