Tokyo Inflation Surges to 1.8 Percent Amid Food Price Pressures

Tokyo's core inflation has accelerated for the third consecutive month, hitting 1.8 percent in August, according to government data released on Friday.

This rise comes as a sign of broadening price pressures that strengthens the case for an interest rate hike by the Bank of Japan (BOJ) as soon as next month.

The core consumer prices in Tokyo have exceeded market forecasts, which predicted a 1.7 percent gain, and are creeping closer to the BOJ's 2 percent target.

The steady price increases in food items drove this growth, with an index stripping away the effect of fresh food and fuel showing a 2.0 percent rise in August after a 1.8 percent gain in July.