BOJ May Hike Rates as Tokyo Core CPI Reaches 2% Threshold

Tokyo's core consumer prices rose by 1.8% in August compared to the same period last year, according to data released on Friday.

This increase reflects broadening price pressures stemming from the Middle East conflict and marks a key milestone as Tokyo edges closer to the Bank of Japan's 2% inflation target.

The Tokyo core consumer price index, which excludes volatile fresh food costs, matched market forecasts of a 1.7% gain following a 1.7% rise in July.

A separate index that strips out both fresh food and fuel, a measure closely watched by the Bank of Japan, rose 2.0% in August, up from 1.8% in the previous month.