Inflation in Tokyo reaches 4%, indicating a stronger trend of rising prices

According to the Ministry of Internal Affairs and Communications data, an increase in consumer prices was recorded in Tokyo in December. The prices rose by 4%, except for fresh food. The majority of consumer items got more expensive amid rising food and energy costs. Economists expected the price increase of 3.8%.

The inflation rate in Tokyo is like an indicator of the general trend observed in the country. For this reason, the accelerating inflation rate was followed by rising prices.

The Bank of Japan will hold its next meeting in the upcoming week. Based on the data, the central bank will decide on the current course of the country’s monetary policy and update its inflation outlook.

Inflation in Japan was expected to peak soon. However, the increase in consumer prices in Tokyo indicates that the previous central bank’s forecast was not justified. The country’s monetary policy course might be changed, thereby keeping investors and economists on high alert.