25 Apr 2014
Tokyo core CPI at 22-yr high post sales tax hike
FXStreet (Bali) - Core consumer prices in Tokyo for the month of April, which excludes fresh food, came at 2.7% from a year earlier,representing the fastest growth in 22 years, with the sales tax hike to blame for such a high re-adjustment.
Tokyo core CPI figures, favorite price indicator by market participants to gauge the success of monetary policies by the BoJ to achieve its inflation target, missed the economists' median forecast of 2.8% though.
As a reminder, the consumer price numbers for the Tokyo area are released one month ahead of nationwide data, thus the relevance of this month's data following the increase in sales tax, which according to the Bank of Japan estimates that the sales tax hike - to 8 percent from 5 percent, will add 1.7% in extra inflation to Japan's consumer inflation in April.
Tokyo core CPI figures, favorite price indicator by market participants to gauge the success of monetary policies by the BoJ to achieve its inflation target, missed the economists' median forecast of 2.8% though.
As a reminder, the consumer price numbers for the Tokyo area are released one month ahead of nationwide data, thus the relevance of this month's data following the increase in sales tax, which according to the Bank of Japan estimates that the sales tax hike - to 8 percent from 5 percent, will add 1.7% in extra inflation to Japan's consumer inflation in April.