Tokyo Posts Lowest Inflation in Two Years
Inflation in Tokyo slowed to its lowest level in nearly two years, with food price increases continuing to moderate.
Consumer prices, excluding fresh food, rose 1.7% in March compared with a year earlier, marking the smallest increase since April 2024, according to a report from the Ministry of Home Affairs released on Tuesday (March 31). Economists had previously expected the inflation rate to remain at 1.8%.
The slower increase partly reflected a slowdown in processed food prices, which fell to 4.9% from 5.5% the previous month.
The overall inflation indicator slowed to 1.4% from a revised 1.5% in February, while a deeper inflation measure, which excludes energy, slowed to 2.3% compared with 2.5% the previous month. This Tokyo data serves as a leading indicator of national inflation trends.
The Bank of Japan (BOJ) has warned of a temporary slowdown in inflation after price growth remained above its 2% target for four years through 2025. With conflicts in the Middle East continuing to push oil prices high, authorities are monitoring the impact on prices across the economy. A BOJ board member said at a meeting earlier this month that the timing of interest rate hikes, including their scale, needs to be considered in light of developments in the Middle East. The BOJ board will set its next policy decision on April 28.
Source: Newsmaker.id
