February 28, 2025 at 02:25AM Inflation in Tokyo slowed more than expected in February, influenced by government subsidies aimed at reducing energy costs, according to data from the Ministry of Internal Affairs. Consumer prices, excluding fresh food, rose by 2.2% compared to a year earlier, slightly below the 2.3% forecast but still above the BOJ’s 2% target. core inflation, which excludes both fresh food and energy, held steady at 1.9%, indicating stable underlying price growth. More on the data here: Tokyo area January inflation data: Headline 3.4% y/y (expected 3%, prior 3%) Tokyo’s inflation rate has been lower than the national average due to local education subsidies. In contrast, nationwide inflation reached 3.2% in January, reinforcing expectations that the BOJ will continue to scale back its monetary easing policies.
The central bank projects inflation will remain at or above its 2% target through March 2027. Economists anticipate the next rate hike could come as soon as the BOJ’s May 1 meeting, though most expect officials to wait until summer. More from Japan earlier: BoJ dep gov Uchida says Bank will taper JGB purchases despite yield moves BoJ’s Uchida says Japan’s economy on a moderate recovery path – some weak spots Japan January preliminary industrial output-1.1% m/m (vs. expected -1.2%) Japan January retail sales +3.9% y/y (expected +4.0%) This article was written by Eamonn Sheridan at www.forexlive.com.
