January Tokyo Consumer Price Index Slowdown: Opinion Poll

Tokyo — Consumer inflation in Tokyo could slow slightly year-over-year in January, according to a Reuters study, after inflation worsened due to the suspension of government discount travel campaigns in late 2020. expensive.

Still, the capital’s core consumer price index, which is widely regarded as a leading indicator of national price trends, is 5 even if the boost gained from the low comparison base of 2020 brought about by discount travel offers is removed. It may have stayed in the positive territory for the month in a row.

Tokyo’s Core Consumer Price Index (CPI), which includes energy but not fresh food prices, was expected to rise 0.3% year-on-year in January, a survey of 16 economists said.

This shows that the core CPI of the Japanese capital has grown the slowest since the 0.3% rise in November.

“As the rise in import costs is passed on, energy and food prices are likely to accelerate further, but the rise will be offset by special downside factors,” said an economist at SMBC Nikko Securities. rice field.

A government campaign to offer consumer discounts on accommodation, suspended in December 2020 after a surge in COVID-19 cases, eased downward pressure on prices earlier last year and boosted prices year-on-year. It may have slowed down.

The Bank of Japan (BOJ) has revised its inflation forecast for the fiscal year beginning in April upwards this week, largely due to soaring global commodity prices.

Minutes of the Bank of Japan’s December policy meeting, released Friday, said some members of the central bank’s board of directors may have begun to become more active in doing so for Japanese companies. showed that.

The government will release the January Tokyo CPI data at 8:30 am on January 28 (January 27, 2330 GMT).