Inflation in Tokyo has slowed below 2% for the first time in five months largely due to energy prices, as the country heads into a general election and the Bank of Japan mulls data for its policy decision next week.
Consumer prices excluding fresh food rose 1.8% in the capital in October, marking the second month of deceleration, the internal affairs ministry reported Friday. The reading slightly exceeded economists’ estimates of 1.7%. Tokyo’s figures often serve as a leading indicator for national trends.
The slowdown was primarily driven by softer growth in energy prices. Government subsidies for energy costs shaved off 0.51 percentage point from the overall price index in October.
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