Consumer Inflation in Tokyo

Tokyo’s consumer inflation likely accelerated in January, indicating persistent pressure on living costs, according to a Reuters poll released on Friday.

Key Highlights:

• The core Consumer Price Index (CPI) for Japan’s capital is set to be released after the Bank of Japan raised interest rates to their highest in 17 years, reflecting confidence in stable inflation around the 2% target.
• Economists’ forecasts suggest that Tokyo’s core CPI increased by 2.5% year-on-year in January, up from 2.4% in December.
• Takumi Tsunoda, a senior economist at Shinkin Central Bank Research Institute, noted that high electricity and gas prices, along with rising gasoline prices, are likely contributors to inflation.
• Recently released data showed a nationwide core consumer price increase of 3.0% year-on-year in December, marking the fastest pace in 16 months.
• Tokyo CPI data is expected at 8:30 a.m. on January 31 (Japan time).

Additional Data to be Released:

• Next week’s reports also include Japan’s industrial output, predicted to rise by 0.3% in December after a 2.2% decline in November, aided by production machinery output.
• Retail sales are projected to increase by 3.2% year-on-year in December, buoyed by strong sales of heating devices like air conditioners.
• Factory output and retail sales data will be published at 8:50 a.m. on January 31 (Japan time).
• Japan’s jobless rate is expected to remain unchanged at 2.5% in December, with a jobs-to-applicants ratio of 1.25, consistent with November’s figures. The jobs data will also be released at 8:30 a.m. on January 31.