The core consumer price index which excluding food prices in Tokyo rose by 0.8% in July on a yearly basis, accelerating for the second month in a row, but did not provide enough for the Bank of Japan, which is struggling to meet the inflation target of 2 percent.
Inflation in Tokyo is a leading indicator of price trends in Japan and may reinforce the chance that the Bank of Japan may see when it meets next week that inflation will not reach the target level for another 3 years. Excluding fresh food prices and energy prices, Tokyo's consumer price index rose by 0.5% in July.
According to some sources, the Bank of Japan, which is facing a steady weak in inflation, is in an extraordinary discussions about ways to make its policy framework more sustainable based on the view that it will take longer than expected to achieve its price target.
The data showed that the national core consumer price index rose last week by 0.8% in June on an annualized basis, accelerating slightly than the previous month, but largely due to higher energy costs.
