Tokyo Inflation Data Sparks Hopes for BoJ Rate Hikes

The Tokyo Consumer Price Index (CPI) data has reinforced the Bank of Japan's (BoJ) hawkish policy outlook, according to a note from Societe Generale.

The report shows that inflation in the capital remains above the central bank's 2% target, supporting expectations for further interest rate hikes.

The Tokyo CPI rose by [X]% year-on-year in [Month], exceeding market forecasts. Core CPI, which excludes fresh food, also remained elevated, reflecting persistent price pressures in services and goods.