Inflation in Tokyo rose to 40-year high
2023.01.10 04:30
Inflation in Tokyo rose to 40-year high
By Kristina Sobol
Budrigannews.com – Data released on Tuesday indicated that consumer inflation in Tokyo rose more than anticipated in December, pointing to a similar rise in national price pressures as the nation struggles with high raw material costs and a weaker yen.
The Consumer Price Index (CPI) increased by 4% in December, exceeding expectations of 3.8% annual growth and the 3.6% reading from the previous month. According to statistics from the Statistics Bureau, the reading was at its highest level since the middle of 1982.
in Tokyo increased by 4% in December, compared to a revised 3.7% increase in November. Additionally, the number was at its highest level in 40 years.
The most recent reading indicates that price pressures are far from meeting the Bank of Japan’s 2% annual target, which is typically used as a bellwether for inflation in Japan’s largest city, Tokyo. In November, overall inflation rose to a level not seen in 40 years and is anticipated to continue rising.
Through the year 2022, Japan faced a significant increase in inflation, primarily as a result of the sharp decline in as the gap between domestic and international interest rates widened significantly.
Inflation also increased in the country as a result of high commodity prices, particularly for energy imports, particularly following the outbreak of the Russia-Ukraine conflict.
Due to the fact that rising prices have a negative impact on the growth of the Japanese economy, there are now expectations that the will eventually tighten its ultra-loose policy this year in order to stem further price increases.
After expanding the range within which it allows the yields on benchmark government bonds to fluctuate, the central bank had unexpectedly adopted a hawkish stance at its meeting in December.
This led to a sharp rise in the yen and increased bets that additional policy tightening was necessary. However, the bank did not indicate that it would take any further actions of this kind.
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Even though the COVID-19 pandemic has hurt economic growth in recent years, Japan has had a monetary policy that is extremely accommodative for nearly a decade.
