Tokyo's consumer prices seen posting slower growth in January: Reuters poll

  • In Business
  • 2022-01-21 04:56:16Z
  • By Reuters

TOKYO (Reuters) - Consumer inflation in Tokyo will likely post slightly slower year-on-year growth in January, a Reuters poll showed, after the suspension of a government discount travel campaign in late 2020 led to a less favourable situation for price rises.

Still, core consumer prices in the capital city - widely considered a leading indicator of nationwide price trends - likely stayed in positive territory for a fifth consecutive month, even when stripping out the boost they got from 2020's low comparison base brought about by discount travel offers.

Tokyo's core consumer price index (CPI), which includes energy but excludes fresh food prices, was expected to rise 0.3% year-on-year in January, the poll of 16 economists showed.

That would mark the slowest growth in the core CPI of Japan's capital since a 0.3% gain in November.

"While energy and food prices likely accelerated further as rising import costs are passed on, the gains will be offset by special downside factors," economists at SMBC Nikko Securities wrote in a note.

A government campaign to give consumers discounts on overnight stays, which was suspended in December 2020 after a jump in COVID-19 cases, likely led to less downward pressure on prices early last year, slowing year-on-year price growth.

The Bank of Japan (BOJ) this week upgraded its inflation forecasts for the fiscal year starting from April largely due to a surge in global commodity prices, which is prodding more firms to pass on higher costs to consumers.

Minutes of the BOJ's December policy meeting released on Friday showed that some of the central bank's board members said Japanese firms might be starting to be more aggressive in doing that.

The government will release January Tokyo CPI data on Jan. 28 at 8:30 a.m. (Jan. 27, 2330 GMT).

(Reporting by Kantaro Komiya; Editing by Daniel Leussink and Christopher Cushing)


More Related News

On The Money - Prices remain high while stocks sink
On The Money - Prices remain high while stocks sink

Food prices could increase even more amid international export bans. We'll also look at this week's stock market carnage, IRS changes and the continued push ...

UN cutting refugee rations in Africa
UN cutting refugee rations in Africa's Sahel amid 'alarming' food insecurity

Food rations for refugees and displaced people are being cut by up to half in parts of the Sahel due to a massive funding shortfall with millions set to go...

Japan inflation hits seven-year high
Japan inflation hits seven-year high

Japan's core consumer prices posted their biggest jump in seven years in April, official data showed Friday, as global commodity prices soared and the yen...

US accuses Russia of weaponizing food in Ukraine war
US accuses Russia of weaponizing food in Ukraine war
  • US
  • 2022-05-20 00:45:34Z

U.S. Secretary of State Antony Blinken accused Russia on Thursday of weaponizing food and holding grain for millions of people around the world hostage to...

UN drops forecast for global economic growth in 2022 to 3.1%
UN drops forecast for global economic growth in 2022 to 3.1%
  • World
  • 2022-05-18 16:00:34Z

The United Nations on Wednesday significantly lowered its forecast for global economic growth this year from 4% to 3.1%, saying the war in Ukraine has...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business