Economy

Stocksak: Japan’s capital sees consumer inflation at its highest level in 33 years


© Stocksak. FILE PHOTO – A woman selects vegetables in a Tokyo supermarket on October 21, 2022. REUTERS/Kim Kyung-Hoon

By Takahiko Wada and Leika Kihara

TOKYO, Stocksak – Core consumer prices, a leading indicator for nationwide figures, rose 3.4% to October from a previous year, data showed on Friday. This was the fastest annual pace since 1989 and a sign that inflationary pressure is growing.

The Tokyo core consumer prices index (CPI), which excludes volatile foods but includes oil costs, increased by 3.1%. This follows a 2.8% increase in September.

For five consecutive months, inflation in Tokyo exceeded the central bank’s target of 2%.

The data came as Bank of Japan held a two day policy meeting that ended later on Friday. It is expected that it will revise up its inflation forecasts and keep monetary policies extremely loose in order to support a fragile economic rebound.

Haruhiko Kuroda (BoJ Governor) has repeatedly said that the bank must keep ultra-low interest rates due to the possibility of temporary cost-push inflation.

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