Tokyo's core inflation rate in Japan hits one-year high, supporting the Central Bank of Japan to raise interest rates

On January 31st, Jinshi data reported that after the third interest rate hike by the Central Bank of Japan under the tenure of Bank Governor Haruhiko Kuroda, the inflation rate in Tokyo, Japan accelerated, providing support for the economic outlook of the Central Bank of Japan. The Japanese government announced on Friday that the consumer price index in Tokyo, excluding fresh food, rose by 2.5% year-on-year in January, which is in line with the median estimate of economists and the largest increase since February last year. The latest CPI data shows that inflationary pressures remain high. The survey results show that the most likely timing for the next interest rate hike by the Central Bank of Japan is in July, followed by September. It is worth noting that 45% of the respondents believe that in a risk scenario, the window for interest rate hikes may be advanced to April. Economist Taro Kimura said that the steady rebound of inflation in Tokyo will make the Central Bank of Japan more confident that inflation is becoming safe near its 2% target, thereby prompting it to continue to reduce stimulus measures this year.