MNI BRIEF: Japan April Tokyo CPI Rises 1.6% Vs. March's 2.4%
Tokyo CPI has fallen faster than market expectations.
The year-on-year rise in the Tokyo core inflation rate decelerated to 1.6% in April from March's 2.4% for the second straight slow down, below 2% for the first time in three months and lower than the market's 2.2% expectation, data from the Ministry of Internal Affairs and Communications showed on Friday.
The slower core CPI was within forecasts by Bank of Japan officials which expected the inflation data to decelerate as the impact of the pass-through of cost increases weakened.
The core-core CPI (excluding fresh food and energy) -- a key indicator in the underlying trend of inflation -- rose 1.8% in April, also slowing from March's 2.9% and below 2% for the first time since September 2022 when it rose 1.7%.
Tokyo saw processed food prices, a key BOJ focus, rise 4.4% in April, down from 6.2% in March.
Services prices, another key metric, rose 0.8% y/y in April, slowing from March’s 2.0%, increasing concern over the BOJ's view that labor cost rises will be transferred to services prices.
The BOJ will hand down its latest monetary policy decision later today. (See MNI BOJ WATCH: Board To Consider Hold, Higher CPI View)