Inflation in Tokyo accelerated for a third month in July, keeping the door open to a possible interest rate hike when the central bank’s policy board meets next week.
Consumer prices excluding fresh food rose 2.2% in the capital, versus 2.1% in June, the internal affairs ministry reported Friday. The reading matched the consensus estimate.
Energy prices drove the gains, with electricity prices rising 19.7% year on year. Gains in prices for processed food slowed a tad. Hotel prices also grew at a slower pace as lodging subsidies were phased out a year earlier.