BOJ May Hike Rates as Tokyo Inflation Hits 1.8%

Tokyo's core inflation rate has increased for the third consecutive month in August 2026, hitting 1.8% year-over-year.

This steady rise in prices is causing speculation that the Bank of Japan (BOJ) may raise interest rates next month.

The main drivers of this inflation are higher costs for durable goods, rent, and medical services, despite some relief from government subsidies on energy bills.

According to BOJ Deputy Governor Ryozo Himino, the central bank is closely monitoring price risks, suggesting that a rate hike may be imminent.