Tokyo’s Inflation in March Drops for Second Month

Core consumer prices in the capital city of Japan slowed for the second month in March, rising 3.2% from a year earlier, compared to the market expectation of 3.1% increase and a 3.3% gain in February.

The reading reached its 42-year high after increasing to 4.3% in January this year.

Still, the reading remains higher than the Bank of Japan’s target of 2%.

Stripping away fresh food and energy prices, the index for Tokyo rose 3.4% in March from a year earlier and was higher than a 3.1% increase in February.


Meanwhile, factory output rose 4.5% in February from January, which was higher than a forecast of a 2.7% gain and also marking a significant rebound from a revised 5.3% drop in January as the supply bottlenecks for carmakers eased.