Economist: Tokyo CPI Data Unlikely to Accelerate Bank of Japan 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 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.

"Although the data shows that prices have potential resilience, it is not yet sufficient 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 earlier." In June, Tokyo 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 national trends. (Jin Shi)