Tokyo Prices Jump Most in Two Years, Backing BOJ’s Hike Path

The pace of inflation in Tokyo accelerated from the previous month to the fastest pace in two years, supporting the Bank of Japan’s rate-hike stance that is now complicated by uncertainty stemming from US tariff measures.

Consumer prices excluding fresh food gained 3.4% in the capital in April from a year earlier, as a mixture of impacts from last year’s school fee cuts and higher food and energy costs pushed up prices, according to a Ministry of Internal Affairs report released on Friday. The result beat the median economist forecast of 3.2%. Overall inflation quickened to 3.5% from 2.9% in March.