Investing.com-- Core consumer inflation in Tokyo slowed slightly in October but remained above the Bank of Japan's 2% target, strengthening the case for another Bank of Japan interest rate hike.
The Tokyo core consumer price index (CPI), which excludes fresh food but includes energy, rose 2.6% year-on-year, below September's 2.7% increase and in line with market expectations.
The index excluding fresh food and energy rose 2.6% annually, after a 2.9% increase in the previous month.
The data come as the BOJ concludes its two-day policy meeting on Friday. The central bank is widely expected to keep its policy rate unchanged at 1.25% after raising it in September, while maintaining the possibility of further tightening as inflation risks persist.
Tokyo inflation is closely watched as an early indicator of nationwide price trends. Persistent price pressures, driven partly by higher import costs from yen weakness and elevated energy prices amid Middle East tensions, could strengthen the case for another rate hike in December.
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