25 April 2025 | Other

Bloomberg forecasts more rate hikes from BOJ amid rising inflation in Tokyo

Bloomberg forecasts more rate hikes from BOJ amid rising inflation in Tokyo

Tokyo's inflation rate accelerated in April, hitting a two-year high. The surge strengthens the case for the Bank of Japan (BOJ) to raise interest rates, even as uncertainty lingers over US tariff policies, Bloomberg reports.

Tokyo's core consumer price index (CPI), excluding fresh food prices, rose 3.4% year-on-year in April, surpassing the expected 3.2%. Meanwhile, the overall inflation rate in Japan's capital accelerated from 2.9% in March to 3.5% this month, with the increase largely attributed to last year’s school fee cuts, along with higher costs for food and energy, according to the news agency.

High school tuition fees added 0.48 percentage points to Tokyo's CPI in April. Meanwhile, non-fresh food items rose 6.4%, while rice prices soared 93.8% forcing Japan to import the grain from South Korea for the first time since 1999, Bloomberg notes.

According to Toru Suehiro of Daiwa Securities, inflation in Japan remains solid, prompting the BOJ to signal impending rate hikes at its next policy meeting.

Elena Berseneva MarketCheese
Period: 15.07.2026 Expectation: 3500 pips
Sell GBPUSD with 1.30000 in view
15 May 2026 39
Gold sell
Period: 31.05.2026 Expectation: 6000 pips
Gold sell-off targets $4,640
15 May 2026 44
Period: 22.05.2026 Expectation: 620 pips
USDCAD challenges key resistance as bulls lose their grip
15 May 2026 25
Period: 29.05.2026 Expectation: 180 pips
Purchasing Brent crude amid global energy deficit
15 May 2026 38
Period: 22.05.2026 Expectation: 600 pips
AUDCAD pulls back on profit-taking after reaching five-year high
15 May 2026 28
Period: 28.05.2026 Expectation: 155 pips
Investing in ETHUSD up to $2,425
14 May 2026 58
Go to forecasts