Economist: Tokyo CPI Data Unlikely to Accelerate BOJ Rate Hikes

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

"Although the data shows potential resilience in prices, it is not yet sufficient to trigger concerns about accelerated cost pass-through to consumers, as the BOJ has indicated," he said. "This is unlikely to prompt the BOJ to raise interest rates prematurely." The Tokyo consumer price index, excluding fresh food, rose 1.6% in June year-on-year, compared to a 1.3% increase in May. Data from Tokyo is often regarded as an early indicator of national trends. (Jin Shi)