Tokyo's January CPI hits 3.4%, with core inflation at 2.5%, surpassing the Bank of Japan's target.

Tokyo's January CPI rose to 3.4% year-over-year, with core inflation at 2.5%, surpassing the Bank of Japan's 2% target. This increase, driven by strong consumer spending, suggests rising price pressures and tight labor markets. The Bank of Japan has already raised interest rates three times since early 2024 and may consider further hikes, though no action is expected until mid-2025. Upcoming wage negotiations and elections could influence future monetary policy decisions.

2 months ago
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