Tokyo consumer inflation rises ahead of Bank of Japan's policy decision

Deep News07:50

Consumer inflation in the Tokyo metropolitan area accelerated in July, rising more than anticipated, reinforcing expectations that the Bank of Japan will continue to raise interest rates.

Government data released on Friday showed that Tokyo's consumer prices, excluding fresh food, increased by 1.9% year-on-year. This marks an uptick from the 1.6% rise recorded in June and surpasses the 1.7% forecast by economists surveyed by data provider Quick.

While the impact of the Middle East conflict and the resulting surge in oil prices is beginning to emerge, the Bank of Japan is widely expected to keep its benchmark interest rate unchanged at 1% during the two-day meeting concluding later in the day. The decision is aimed at assessing the effects of the rate hike implemented in June.

The Bank of Japan remains committed to tightening its monetary policy. However, policymakers have indicated they will closely analyze the situation in the Middle East to determine the timing and pace of any further moves.

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