Tokyo Core Inflation Hits 1.8%, Approaches Japan's Target

Tokyo's core consumer price index rose to 1.8% year-on-year in August, exceeding market forecasts and approaching Japan's Bank of Japan target of 2%. The indicator excludes volatile fresh food prices.

The Tokyo Core Index also excludes the impact of fuel prices, increasing by 2% year-on-year in August. This is considered a more accurate gauge of underlying inflation dynamics by the Bank of Japan.

Analysts link intense price pressure to the conflict in the Middle East and warn that it could eventually affect consumer prices.