Japan’s capital city’s core consumer prices increased at their quickest annual rate in 40 years as a leading indication of national trends, in October and went beyond the central bank’s 2% goal for a sixth consecutive month, indicating broader inflationary pressure.
Inflation in Tokyo last accelerated in April 1982, when the core CPI increased by 4.2% over the previous year. The gain was higher than both the 3.4% increase in October and the median market projection of 3.5%. Food and gasoline prices were the main drivers of the increase, although a wider range of commodities also saw an increase.
According to official data, service costs increased by 0.7% in November compared to the same month last year, following a rise of 0.8% in October. On the theory that inflation will fall back down to its target level next year, the BOJ has maintained extremely low interest rates. The central bank has continued to stand itself from a global surge of monetary tightening intended to tackle skyrocketing inflation.