Tokyo Inflation Accelerates to 2.8%, Strengthening Case for BOJ Rate Hike
Tokyo's Core inflation surged to 2.8% in October, marking the fastest pace in months and exceeding economist forecasts of 2.6%. The data reinforces expectations that the Bank of Japan may soon end its decade-long near-zero interest rate policy as domestic price pressures persist despite global inflationary cooling.
The inflation print—driven by rising costs excluding fresh food and energy—signals mounting pressure on the BOJ to normalize monetary policy. Bloomberg Economics notes the stronger-than-expected figures could accelerate the timeline for rate hikes, with companies continuing to pass through price increases.