Tokyo Core Inflation Accelerates to 1.9% Amid Rising Food Prices

The Tokyo core consumer price index (CPI), which excludes volatile fresh food costs, rose 1.9% in July, exceeding a median market forecast of 1.7%. This increase is attributed to rising prices of food and daily necessities.

Service-sector inflation remained steady at 1.1% in July, indicating that firms are taking their time to pass on the costs of higher labor expenses to consumers.

The Bank of Japan (BOJ) closely watches an index that strips away the effect of fresh food and fuel prices, which rose 2.0% in July after a 1.9% gain in June.