Tokyo area December inflation data: Headline 3.0% y/y (expected 2.9%)

Tokyo area inflation for December 2024.

Headline 3.0% y/y

expected 2.9%, prior 2.6%

Core (excluding fresh food) +2.4%

• expected 2.5%, prior 2.2%

Core-core (excluding food and energy) 2.4% y/y

• prior 2.2%

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I’d think this will keep the Bank of Japan on track for a January interest rate hike.

Ueda spoke earlier this week:

• BOJ governor Ueda: We must raise rates if economic, price developments continue to improve

I posted this earlier as a heads up to the Tokyo CPI:

• National-level CPI data for this month will follow in about three weeks, it takes longer to gather and collate the national data.
• Tokyo CPI is a sub-index of the national CPI
• It measures the change in prices of goods and services in the Tokyo metropolitan area
• Its considered a leading indicator of national CPI trends because Tokyo is the largest city in Japan and is a major economic hub
• Historically, Tokyo CPI data has been just slightly higher than national Japan CPI data. The cost of living in Tokyo is a touch higher than in most other parts of Japan. Higher rents, for example

This article was written by Eamonn Sheridan at www.forexlive.com.