Inflation in Tokyo picked up speed in August, supporting the case for the Bank of Japan to continue raising rates at a gradual pace.
Consumer prices excluding fresh food rose 2.4% in the capital, an acceleration from 2.2% growth in July, the internal affairs ministry reported Friday. The result exceeded a consensus estimate of 2.2%. Tokyo’s figures are leading indicators of the national data due in September.
After the BOJ’s July 31 interest rate hike, Gov. Kazuo Ueda indicated his intention to raise the benchmark rate again if price trends developed in line with the bank’s projections.