Tokyo CPI Rises 2.7 Percent In a Year

Consumer prices in Tokyo rose at their fastest pace in 22 years in April, surging 2.7% from a year earlier, according to preliminary data.

That is up from a 1% annual increase in consumer prices in Tokyo in March.

The data comes after Japan increased its sales tax to 8% from 5% from 1 April, pushing up prices.

The inflation rate in Japan’s capital city is seen as a leading indicator of the trend that is likely to follow across the country in coming months.

Japan has been trying to spur domestic demand through higher inflation.

Marcel Thieliant, Japan economist Capital Economics, said that consumer price growth across the country was likely to be even better than Tokyo in April.

“Of course national inflation will have surged in April due to the sales tax rise,” he said.

“Nationwide inflation probably accelerated by even more, as the national Consumer Price Index (CPI) has a lower weight on components which are not subject to the sales tax, notably housing rent and school fees.”

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza