Consumer inflation in Japans capital rises at fastest pace in 40 years

Consumer inflation in Japan’s capital rises at fastest pace in 40 years.

Consumer inflation, Japan, capital, fastest pace

TOKYO - Core consumer prices in Japan’s capital, considered a leading indicator of nationwide trends, rose 3.6 per cent in November from a year earlier, marking the fastest annual pace in 40 years in a sign of broadening inflationary pressure.

The rise in the Tokyo core consumer price index (CPI), which excludes fresh food but includes fuel costs, exceeded a median market forecast for a 3.5 per cent gain and accelerated from a 3.4 per cent increase in October, government data showed on Friday.

Core consumer inflation in Tokyo remained above the Bank of Japan’s 2 per cent target for six straight months in November, a sign that rising raw material costs were steadily pushing up a broad range of prices for daily necessities.

The Tokyo core-core CPI index, which strips away both fresh food and fuel costs, rose 2.5 per cent in November from a year earlier, pacing up from a 2.2 per cent gain in October.

The Bank of Japan has kept interest rates ultra-low on the view the recent rise in inflation will prove temporary, remaining an outlier among a wave of central banks tightening monetary policy to combat soaring inflation. REUTERS

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