Tokyo Core CPI Rises 1.9% in August, Keeping BOJ Rate-Hike Bets Alive

The Tokyo Core Consumer Price Index (CPI) rose by 1.9% year-over-year in August, meeting market expectations and holding above the Bank of Japan's 2% inflation target.

This reading, which excludes fresh food prices, indicates persistent underlying price pressures in Japan's capital, keeping alive speculation about further interest rate hikes by the central bank later this year.

The slight deceleration from July's 2.0% rise was largely attributed to a moderation in energy costs, while service prices continued to climb steadily, reflecting robust domestic demand and rising wages.