Tokyo Core CPI Accelerates to 1.6% for First Rise in Eight Months
Tokyo’s core consumer price index rose to 1.6% in the year ended in June, beating the previous reading of 1.3% and matching forecasts, according to data released late Wednesday. The overall consumer price index came in at 1.7%, up from 1.4%. The acceleration marks the first increase in the capital’s key inflation gauge in eight months.
The data strengthens the case for the Bank of Japan to continue tightening monetary policy. Board member Naoki Tamura recently advocated for rate hikes every few months to reach a 2% neutral interest rate, while Governor Kazuo Ueda warned that inflation could overshoot the central bank’s 2% target. The inflation reading reinforces expectations that the BOJ will maintain its gradual lifting of the policy rate as price pressures persist across the Japanese economy.
From the sources (25 posts)
@financialjuiceBOJ June meeting summary of opinions: one member said it’s become more suitable to modify monetary support as currency moves raise import costs
@financialjuiceBOJ summary: even after June rate increase, central bank must keep option for further hikes if economy, prices follow forecasts
@financialjuiceBoJ summary: one member says policy rate should be raised toward neutral level as soon as possible
@financialjuiceBoJ summary: one member said central bank must raise policy rate near neutral soon to prevent large, abrupt hikes later
@financialjuiceOne member says Japan's neutral rate is about 2%, BOJ should raise rates every few months
@financialjuiceBOJ summary: Cabinet office representative states BOJ must ensure accountability on rate hike, take proactive, appropriate steps amid excessive economic fluctuations
@financialjuiceBOJ summary: Cabinet Office rep says BOJ must assess macroeconomic effects of shrinking balance sheet, take steps for market stability
@firstsquawkBOJ JUNE MEETING OPINIONS SHOW A HAWKISH TONE, WITH MEMBERS SAYING IT IS APPROPRIATE TO CONTINUE RAISING INTEREST RATES AS FINANCIAL CONDITIONS REMAIN ACCOMMODATIVE AND CURRENCY-DRIVEN IMPORT COSTS ADD TO INFLATION PRESSURES. SOME MEMBERS
@financialjuiceOne member: downside risks to output, employment could disrupt virtuous cycle between wages and prices, possibly drive Japan back into deflation
@financialjuiceOne member warns firms' active price-setting could drive inflation higher
@financialjuiceBOJ summary: one member said even if crude oil prices decline, upward price pressures likely to spread across broader range of items
@businessThe Bank of Japan signaled the need for further increases to the benchmark interest rate in a summary of opinions from a last week’s board meeting, when authorities raised the policy rate to the highest since 1995
@firstsquawkBANK OF JAPAN MEMBERS SIGNAL PUSH FOR REGULAR RATE INCREASES TO CONTROL INFLATION-WSJ
@firstsquawkBOJ’s Ueda, in remarks read by Deputy Governor Himino, said the economy is likely to see slower growth but maintain a gradual recovery.
@firstsquawkBOJ’s Ueda signaled further rate increases in response to the economy and inflation, while saying financial conditions remain easy.
@firstsquawkAccording to BOJ Governor Ueda, further rate hikes will be made as needed based on economic and price developments, while financial conditions stay accommodative.
@firstsquawkAccording to a speech delivered by Deputy Governor Himino on behalf of BOJ Governor Ueda, the timing and pace of future interest rate increases were addressed.
@firstsquawkGovernor Ueda stated that decisions will be guided by evaluating baseline forecasts and risks, while emphasizing the overall stability of Japan’s financial system.
@firstsquawkThe BOJ said it will likely keep raising rates as underlying inflation moves toward 2%, while assessing impacts from Middle East developments, AI investment profitability, and overseas nonbank financial activity.
@financialjuiceBoJ's Governor Ueda: To keep hiking rate in response to economy and prices
@financialjuiceBoJ's Governor Ueda: There is risk underlying inflation may overshoot 2%
@financialjuiceBoJ's Governor Ueda: Timing and pace of future rate hikes will be decided by scrutinising the likelihood of baseline forecasts materialising as well as risks
@businessThe Bank of Japan sees the risk of inflation exceeding its 2% target, Governor Kazuo Ueda says
@financialjuiceBOJ's Tamura: Japan's neutral rate is about 2%
@firstsquawkTamura Says Japan’s Neutral Rate Likely Near 2%, BOJ Board Member States