Japan's Tokyo Core Inflation Rate Hits One-Year High, Supporting Bank of Japan Rate Hike

January 31st - After Bank of Japan Governor Haruhiko Kuroda implemented the third rate hike within a week, the inflation rate in Tokyo picked up pace, offering support to the Bank of Japan's economic outlook. The Japanese government announced on Friday that in January, the consumer prices in Tokyo, excluding fresh food, increased by 2.5% year-on-year, which was in line with the median forecast of economists and marked the largest rise since February of last year. The latest CPI data indicates persistent inflationary pressures. According to a survey, the most likely time for the Bank of Japan's next rate hike is in July, followed by September. It is noteworthy that 45% of the respondents believe that in a risk scenario, the rate hike window may be advanced to April. Economist Taro Kimura stated that Tokyo's inflation rebounding vigorously once again will further convince the Bank of Japan that inflation is steadily approaching its 2% target, prompting it to continuously scale back stimulus measures throughout this year. (Kinshi)