Inflation Drops in Tokyo, But Interest Rate Hikes May Continue
Tokyo inflation went down more than people expected 📉. Prices of food 🥗 and energy ⚡ became softer, so overall price growth slowed. In December, Tokyo’s CPI without fresh food increased 2.3% compared to last year, while it was 2.8% in November 🔎. This is the first slowdown since August 📆, and it shows food prices are rising more slowly and energy costs are falling.
Even though inflation is slowing, it is still above the Bank of Japan’s 2% target 🎯. Because of this, the Bank of Japan may still continue raising interest rates 📈🏦. Tokyo’s data is important because it often shows what may happen to prices across all of Japan.
What do you think? should the Bank of Japan continue rate hikes or pause them now?
