Inflation in Tokyo accelerated in May, keeping the Bank of Japan largely on track to consider a rate hike in coming months even as the economy continues to show signs of weakness.
Consumer prices excluding fresh food rose 1.9% in May in the capital, internal affairs ministry data showed Friday. The result, which matched economists’ consensus estimate, was largely driven by utility costs related to renewable energy surcharges.
The Tokyo inflation figures typically serve as a leading indicator for national trends. That suggests a similar acceleration is likely when the nationwide reading is released next month. The inflation rate in the capital is currently lower than the national mark due mainly to educational support measures introduced by the metropolitan government.