Inflation in Japan’s capital Tokyo topped 4% for the first time since 1982, and rising costs were beginning to bite into consumer spending.
On Tuesday, the Japanese Ministry of Internal Affairs reported that, excluding fresh food, consumer prices in the capital rose by 4% in December, higher than the 3.8% increase predicted by economists.
The acceleration was pushed along by the intake of both food and energy.
Despite the Tokyo prices having been above the Bank of Japan’s 2% objective for seven months, governor Haruhiko Kuroda is unlikely to be convinced that the trend will continue. The Bank of Japan anticipates inflation below 2% in the forthcoming fiscal year.
Kuroda stated that the BoJ will keep easing monetary policy until Japan reaches its inflation target in a sustainable manner, accompanied with a wage hike.