Japan Tokyo Core CPI

The core consumer price index for the Ku-area of Tokyo in Japan increased by 2.4% year-on-year in March 2025, accelerating from 2.2% in February which was also the consensus forecast. This marks the fifth consecutive month that core inflation has remained above the Bank of Japan’s 2% target, reinforcing expectations that the central bank will continue normalizing monetary policy. The BOJ held interest rates steady during its March policy meeting as the board took a cautious stance while assessing the impact of rising global risks on the domestic economy. However, BOJ Governor Kazuo Ueda signaled this week that further rate hikes are likely if economic conditions align with projections. Tokyo’s inflation data is widely regarded as a leading indicator of nationwide price trends.