Tokyo Inflation Surge Supports Bank Of Japan's Economic Outlook

According to BlockBeats, following the third interest rate hike under Governor Kazuo Ueda, Tokyo's inflation rate has accelerated, bolstering the Bank of Japan's economic outlook. The Japanese government reported on Friday that consumer prices in Tokyo, excluding fresh food, rose by 2.5% year-on-year in January, aligning with economists' median forecasts and marking the largest increase since February of last year. The latest Consumer Price Index (CPI) data indicates persistent inflationary pressures. Survey results suggest that the Bank of Japan's next rate hike is most likely in July, followed by September. Notably, 45% of respondents believe that in a risk scenario, the rate hike window could be advanced to April. Economist Taro Kimura stated that the robust resurgence of Tokyo's inflation will reinforce the Bank of Japan's confidence that inflation is stabilizing near its 2% target, prompting further reduction of stimulus measures this year.