Tokyo CPI Steady in August as Core Inflation Remains Near BoJ Target

The Tokyo Consumer Price Index (CPI) remained steady in August, with an annual increase of 1.8%, according to data released by the Statistics Bureau on Friday. This figure is largely in line with expectations and remains close to the Bank of Japan's target inflation rate.

The core reading, which excludes volatile fresh food prices, fell to 1.9% from 2.0% in the prior month. This decline was driven by a stronger yen, which helped bring down some import costs.

However, overall Japanese inflation remains largely sticky, with food and living costs continuing to rise in August. The Tokyo government has maintained subsidies on consumer fuel and gas prices, limiting the inflationary effects of surging global oil prices due to the Iran conflict.