Core consumer prices in Tokyo gained 3.4% in October from a year ago, marking the sharpest increase in over 40 years, government data showed Friday, in fresh evidence of a weaker yen magnifying the inflationary pressures caused by higher commodity prices.
The key index of consumer inflation for Tokyo excluding volatile fresh food rose for the 14th straight month, with the speed of its increase picking up from 2.8% in September. It has stayed above the Bank of Japan's 2% target for the past five months.
Tokyo's core CPI is an indicator of what to expect in the rest of the country. Economists forecast that the nationwide figure, which topped 3% in September, will rise further toward year-end, challenging the BOJ's efforts to stick to its ultralow rate policy.