Japan Tokyo Core CPI

The core consumer price index for the Ku-area of Tokyo in Japan rose 3.4% year-on-year in April 2025, accelerating from a 2.4% increase in March and marking the highest level in two years. The reading also surpassed market expectations of 3.2%, driven by a reduction in government subsidies aimed at curbing electricity and gas bills, along with a wave of food price hikes implemented on April 1, coinciding with the start of Japan's new fiscal year. Despite rising inflation, the Bank of Japan is widely anticipated to keep its policy rate unchanged at 0.5% at its meeting next week, as policymakers remain cautious amid uncertainty over the economic fallout from new U.S. tariffs. Washington has reportedly informed Japan’s trade delegation that Tokyo will not receive exemptions under the current tariff regime, despite Japan’s requests for reconsideration. Tokyo’s inflation figures are closely watched as an early indicator of nationwide price trends.