Tokyo Inflation Rises to 2.4% in August

Inflation in Tokyo accelerated in August, with consumer prices excluding fresh food rising 2.4%, up from 2.2% in July, exceeding market expectations. This uptick in inflation supports the Bank of Japan's (BOJ) ongoing deliberations about gradual interest rate hikes, as it continues to balance economic support with inflationary pressures. Concurrently, the unemployment rate rose slightly to 2.7% while the jobs-to-applicants ratio increased to 1.24, indicating a stable job market. Japan's industrial output also showed growth at 2.8% in July, although retail sales growth slowed, reflecting a cautious economic recovery. Despite these positive indicators, economists suggest any further rate hikes will likely occur in early 2024 due to ongoing economic uncertainties. The BOJ is expected to maintain its current policy at the upcoming meeting on September 20, with most analysts predicting a rate increase between October and January.