MNI BRIEF: Japan Nov Tokyo Core CPI Rises 2.2% Vs. Sept 1.8%
MNI (TOKYO) - The year-on-year rise in the Tokyo core inflation rate accelerated to 2.2% in November from October’s 1.8%, rising above 2% for the first time in two months, data from the Ministry of Internal Affairs and Communications showed on Friday.
The November index was driven by higher energy prices (+7.4% vs. +2.5%) and household durable goods (+8.8% vs. +8.4%) and the core CPI was within forecasts by Bank of Japan officials who expected inflation to stay at about 2%.
The core-core CPI (excluding fresh food and energy) – a key indicator in the underlying trend of inflation – rose 1.9% y/y in November vs. 1.8% in October but stayed below 2% for the eighth straight month.
Tokyo saw processed food prices, which BOJ officials are focused on, rise 2.8% in November, accelerating from October’s 2.5%, while services rose 0.9% in November vs. October’s 0.8%.
The results will add pressure on the BOJ to increase its policy rate. The Board will next meet Dec 18-19. (See MNI POLICY:Equities, Politics To Weigh On BOJ Dec Decision)