MNI BRIEF: Japan Feb Tokyo CPI Rises 2.5% Vs. Jan 1.8%
The year-on-year rise in the Tokyo core inflation rate accelerated to 2.5% in February from January's 1.8%, the first acceleration in four months after falling below the 2% target in January, data released by the Ministry of Internal Affairs and Communications showed on Tuesday.
The faster core CPI was within Bank of Japan forecasts, which expected inflation to rebound in February.
The data indicated that nationwide CPI in February will likely rise from January’s 2.0%, supporting the BOJ’s view that the impact of cost-push price hikes continue weakening but services prices will support CPI. (See MNI POLICY: Weak Yen Fuels Wage, Prices; Authorities Vigilant)
The core-core CPI (excluding fresh food and energy) – a key indicator in the underlying trend of inflation – rose 3.1% y/y in February, slowing from January’s 3.3% and staying above the bank’s 2% target for the 21th consecutive month.