Tokyo Core Inflation Nears BOJ Target as Rate Hike Expectations Rise
The Tokyo core inflation rate accelerated in August for the third consecutive month, reaching 1.8% year-over-year, according to government data released on Friday.
This increase is slightly above market forecasts of a 1.7% gain and brings the rate close to the Bank of Japan's (BOJ) 2% target.
The core consumer price index in Tokyo, which excludes volatile fresh food costs, rose due to steady price increases in food items, and an index stripping away the effect of fresh food and fuel increased by 2.0% in August after a 1.8% gain in July.
BOJ Deputy Governor Ryozo Himino warned of mounting inflationary risks, reinforcing market expectations of a near-term rate hike, which is expected to occur as soon as next month, at the BOJ's policy meeting on September 17-18.