Tokyo Aug core consumer prices rise at fastest pace in nearly 8 years

People make their way at Ameyoko shopping district in Tokyo, Japan. REUTERS/Kim Kyung-Hoon/File photo

TOKYO  – Core consumer prices in Japan’s capital Tokyo rose in August at their fastest pace in nearly eight years, as inflationary pressures broadened due to higher fuel and raw material costs.

The core consumer price index for Tokyo gained 2.6 percent in August, above the median market forecast for a 2.5 percent rise in a Reuters poll. The pace of increase, which followed a 2.3 percent gain in the previous month, was the fastest since October 2014.

The data heightens the chance nationwide consumer prices will continue to rise in coming months, though the pace of gains has remained modest compared with other major economies.

The world’s third-largest economy saw nationwide core CPI rise 2.4 percent in July from a year earlier, driven by fuel and raw material prices and straining households yet to see significant wage gains.

While inflation has now exceeded the Bank of Japan’s 2 percent target for four straight months, the central bank is still expected to keep monetary conditions ultra loose for the time being.

Daniel Leussink, Takahiko Wada

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