Economist: Tokyo CPI data unlikely to accelerate Bank of Japan rate hike

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

"While the data shows potential resilience in prices, it is currently not enough to raise concerns about accelerating cost pass-through to consumers, as the Bank of Japan has stated," he said. "This is unlikely to prompt the Bank of Japan to raise interest rates prematurely." The Tokyo consumer price index excluding fresh food rose 1.6% year-on-year in June, compared with a 1.3% increase in May. Data for Tokyo is seen as an early indicator of national trends. (Jin Shi)