Tokyo CPI rises more than expected in Nov, core inflation muted
2024.11.28 19:09
Investing.com– Tokyo consumer price index inflation grew more than expected in November as private spending remained underpinned by strong wage growth, although a measure of underlying inflation still remained muted.
, which excludes volatile fresh food items, rose 2.2% year-on-year in November, government data showed on Friday. The reading was above expectations of 2.0% and picked up sharply from the 1.8% seen in the prior month.
A core reading that excludes both energy and fresh food costs rose 1.9% in November from 1.8% in the prior month. The reading is closely watched as a gauge of underlying inflation by the Bank of Japan, but remained below the central bank’s 2% annual target for an eighth straight month.
inflation surged 2.6% from 1.8% in the prior month.
Muted underlying inflation could limit the BOJ’s plans to keep raising interest rates, given that the central bank has signaled that it will seek more signs that inflation will sustainably remain at its 2% target.
Tokyo inflation data usually acts as a bellwether for nationwide inflation, which is due later in December. The BOJ is expected to raise interest rates in December after two historic hikes earlier this year.
