• Dec 19, 2024

Tokyo inflation likely accelerated on suspended energy subsidies: Reuters poll

The expected pickup could prod the Bank of Japan, which decided to keep interest rates unchanged at 0.25% on Thursday, to raise borrowing costs in the new year. The core consumer price index (CPI) in Tokyo, a leading indicator of nationwide price trends, was expected to have sped up to 2.5% year-on-year in December from 2.2% in November, the median forecast of 17 economists showed. "With the end of the subsidies for electricity and city gas provided by the government, energy prices are expected to rise, pushing up the core CPI significantly," said analysts at SMBC Nikko Securities.