Tokyo CPI inflation accelerates to 2.8% in October
Tokyo's headline consumer price index rose 2.8% year-on-year in October, up from 2.7% in September, the Statistics Bureau of Japan reported. The yen showed little reaction to the data.
Core inflation in the capital, which strips out fresh food prices, came in at 2.6% year-on-year, matching expectations but slowing from 2.7% the previous month. A narrower measure excluding both fresh food and energy eased further, to 2.4% from a downwardly revised 2.7% in September.
Tokyo’s CPI figures are closely watched because they are released ahead of the nationwide data and are often seen as an early signal for Japan’s broader price trends.
USD/JPY showed little movement following the release, trading down 0.06% on the day at 157.72.
The mixed picture in Tokyo CPI inflation, with the headline rate rising while the core and core-core measures slowed, leaves the near-term path for Bank of Japan (BoJ) policy unclear. Inflation readings above the BoJ’s 2% target typically support expectations of tighter monetary policy and a firmer yen, while a cooling in core measures could temper those bets, with knock-on effects for USD/JPY and Japanese government bonds (JGBs).
Source: FXStreet