Tokyo Inflation Nears BOJ Target Amid Rising Energy Costs

Tokyo's core inflation rate has accelerated for the third consecutive month, reaching 1.8% in August from a year earlier.

This increase is slightly above market forecasts of 1.7%, and brings Tokyo's core inflation rate near the Bank of Japan's (BOJ) target of 2%.

The rise in Tokyo's core consumer price index, which excludes volatile fresh food costs, was driven by steady price increases in food items.

Analysts say this trend is likely to continue due to the impact of the Middle East conflict on energy costs and subsequent second-round effects leading to broader price increases.

The BOJ will scrutinize this data at its next policy meeting, set for September 17-18, where most market players expect a hike in the policy rate to 1.25%.