Tokyo’s consumer inflation rate is expected to fall below the Bank of Japan’s 2% target in October, the first time in five months that it will deviate from the target, according to a recent survey.
Tokyo’s core consumer price index (CPI) is expected to rise 1.7% year-on-year, based on the average forecast of 18 economists. This forecast follows a 2.0% increase in September and is down from a 1.9% increase in May.
“The rate of increase in food prices is slowing, and the pace of recovery in personal consumption is slow despite significant wage growth,” said Takeshi Nambu, chief economist at the Norinchukin Research Institute.
Data on Friday revealed that Japan’s national core CPI, which includes energy items but excludes fresh food, rose 2.4% in September. This information comes before the government releases Tokyo CPI data for October, scheduled for 8:30 a.m. Japan time on October 25, 2023 (23:30 GMT on October 24, 2023). I am doing it.
These figures will be the latest price data available when the Bank of Japan formulates its quarterly economic outlook at its October 30-31 monetary policy meeting.
The Bank of Japan is expected to maintain current interest rates at its next meeting in October. A slight majority of economists expect the Bank of Japan to maintain the current interest rate of 0.25% until the end of December, and almost 90% expect it to raise interest rates to 0.5% by the end of March.
Reuters contributed to this article.
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