Tokyo Inflation Nears BOJ Target, Bolstering Rate-Hike Chances

Tokyo's core inflation rate accelerated for the third consecutive month in August, hitting 1.8% year-over-year and nearing the Bank of Japan's (BOJ) 2% target.

The data, considered a leading indicator of nationwide trends, was released on Friday and shows that prices are increasing across various sectors, driven mainly by steady price rises in food items.

Bank of Japan Deputy Governor Ryozo Himino warned last week about mounting inflationary risks, reinforcing market expectations of an interest rate hike as soon as next month.