Tokyo Prices Heat Up Again, Supporting Case for BOJ Rate Hike
- Inflation in capital hits 2.5%, aided by weak year-ago reading
- Bond yields rise after report that keeps BOJ on track for hike
Customers dine at a ramen bar in the Shinjuku district of Tokyo.
Photographer: Soichiro Koriyama/BloombergThis article is for subscribers only.
Price growth in Tokyo surged back above the Bank of Japan’s target in February, a jump that supports the case for the central bank’s first interest rate hike since 2007.
Consumer prices excluding fresh food rose 2.5% in the capital, re-accelerating after cooling in January to a revised 1.8%, the ministry of internal affairs said Tuesday. The reading matched economists’ estimates. The pickup largely reflected the fading impact of government subsidies rolled out last year to keep a lid on utility costs.