Economist: Tokyo CPI Data Unlikely to Accelerate BoJ Rate Hike

Odaily Planet Daily News Takuya Hoshino, an economist at Dai-ichi Life Research Institute in Japan, stated that consumer inflation in the Tokyo metropolitan area has risen for the first time in eight months in June, but this result does not necessarily accelerate the pace of interest rate hikes by the Bank of Japan (BoJ).

"While the data suggests potential resilience in prices, it is not yet sufficient to spark concerns about accelerating cost pass-through to consumers, as the BoJ has stated," he said. "This is unlikely to prompt the BoJ to raise interest rates prematurely." Tokyo's consumer prices excluding fresh food rose 1.6% year-on-year in June, compared to a 1.3% increase in May. Data from Tokyo is seen as an early indicator of national trends. (Jin10)