The core consumer price index for the Ku-area of Tokyo in Japan increased by 1.8% year-on-year in October 2024, marking a slowdown for the second consecutive month and reaching its lowest level since April.
This figure follows a reading of 2% in September and slightly exceeds forecasts of 1.7%. Tokyo’s inflation rate is often seen as a leading indicator for nationwide price trends, with national CPI data expected in about three weeks. The easing inflation in Japan and political uncertainty raise concerns about the potential for further interest rate hikes by the Bank of Japan.
BOJ's Adachi advocates for cautious rate hikes amid global economic uncertainties
Recently, BOJ board member Seiji Adachi highlighted the need for the central bank to increase rates at a "very moderate" pace, cautioning against a drastic policy shift due to uncertainties surrounding the global economic landscape and domestic wage growth.
