Tokyo consumer inflation accelerates ahead of Bank of Japan policy decision

Glonghui July 31｜Consumer inflation in the Tokyo metropolitan area accelerated in July, rising more than expected, making it likely that the Bank of Japan will continue to raise interest rates. Government data released on Friday showed Tokyo's core consumer prices, excluding fresh food, rose 1.9% year-over-year. This increase is higher than June’s 1.6% as well as the 1.7% forecast by economists surveyed by data provider Quick. Although the impact of the Middle East conflicts and subsequent oil price increases has begun to appear, it is widely expected that, to assess the effect of the June rate hike, the Bank of Japan will keep its 1% interest rate unchanged at the conclusion of its two-day meeting later today. The Bank of Japan remains committed to tightening monetary policy, but officials have indicated that they will closely analyze the Middle East situation to decide on the timing and pace of further action.