Tokyo’s CPI slowdown Support BoJ’s Interest Rate Caution

Tokyo Consumer Price Index, for March, increases 2.6% YoY from 2.6% earlier.
The headline The Tokyo Consumer Price Index (CPI) increased 2.6% YoY in March after increasing 2.6% in the prior reading, according to data released on Friday by the Statistics Bureau of Japan. In the meantime, after rising 3.1% in February, the Tokyo CPI excluding fresh food and energy increased 2.9% YoY.

In addition, the market anticipated a 2.4% increase in the Tokyo CPI, excluding fresh food, for the aforementioned month. The USD/JPY pair was up 0.04% on the day at 151.43 as of this writing.

Following its first interest rate hike since 2007, the Japanese central bank’s argument for a cautious policy stance was strengthened by the Tokyo consumer price inflation slowdown in March.
Following its interest first rate hike since 2007, the central bank’s argument for a cautious policy stance was strengthened by the Tokyo consumer price inflation slowdown in March.

The ministry of internal affairs reported on Friday that prices in the capital, excluding fresh food, increased by 2.4%, a little decline from the 2.5% increase in February. The reading agreed with the estimates of economists.