MNI BRIEF: Japan Feb Tokyo Core CPI Rises 2.2% Vs. Jan's 2.5%
MNI (TOKYO) - The year-on-year rise in the Tokyo core inflation rate decelerated to 2.2% in February, from January’s 2.5% but remained above the Bank of Japan's 2% target for the fourth straight month, data from the Ministry of Internal Affairs and Communications showed on Friday.
Lower energy (+6.9% vs. +13.3%) and households’ durable goods (+5.5% vs. +8.0%) weighed on the index, although food excluding perishables rose 5.5% in February vs. 4.7% in January.
The core-core CPI (excluding fresh food and energy) – a key indicator of the underlying trend of inflation – rose 1.9% y/y in February, unchanged from +1.9% in January, and below 2% for the 11th straight month.
Tokyo saw processed food prices, a key BOJ focus, rise 3.2%, accelerating from January’s 3.0%, while services prices rose 0.6% in February, flat over the month.
The data underscored the Bank of Japan’s view that inflation is on track, supporting a further rate hike following January's 25 basis point increase. (See MNI BOJ WATCH: Ueda Flags More Hikes, No Clear Timeline)