Economist: Tokyo CPI Data Unlikely to Accelerate Bank of Japan’s Rate Hikes

Odaily 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 rebounded for the first time in eight months in June, but this result does not necessarily accelerate the Bank of Japan's pace of interest rate hikes.

"Although the data shows that prices have underlying resilience, it is not yet enough to raise concerns about cost acceleration being passed on to consumers, as the Bank of Japan has stated," he said. "This is unlikely to prompt the Bank of Japan to raise interest rates ahead of schedule." In June, Tokyo's consumer prices excluding fresh food rose 1.6% year-on-year, compared to a 1.3% increase in May. Data from Tokyo is seen as an early indicator of the national trend. (Jinshi)