Tokyo Inflation Moderates but Remains Above BOJ Target

Despite a slight slowdown in March, Tokyo's inflation rates continue to exceed the Bank of Japan's target, prompting considerations for further interest rate hikes.

• Consumer price growth in Tokyo slowed to 2.4% in March, slightly down from 2.5% in February, yet still above the BOJ's inflation target.
• The Bank of Japan remains on a path to consider more interest rate increases, following its first hike since 2007 earlier this month.
• A deceleration in core inflation and a slide in factory output introduce uncertainty into the BOJ's rate hike outlook.
• Large firms in Japan have offered significant wage increases, potentially influencing future inflation and economic recovery.
• The BOJ's next meeting in April will be crucial for updating its price outlook and deciding on further policy adjustments.

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The Japan Times Financial Post CNA