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

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

"Although the data shows potential price resilience, it is still not enough to raise concerns about accelerated 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 early." The core CPI in Tokyo, excluding fresh food, rose 1.6% in June from a year earlier, compared with a 1.3% increase in May. Data from Tokyo is seen as an early indicator of national trends. (Jinshi)