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Tokyo Inflation Gauge Seen Largely Steady Ahead of BOJ's December Decision

Investors view the reading as a lead indicator shaping expectations for the late-December policy meeting.

Overview

  • Economists expect Tokyo's November CPI to be broadly unchanged from October with roughly a 0.1% dip.
  • The Bank of Japan convenes on December 18–19, with the board still weighing whether to raise rates.
  • BOJ board member Noguchi warned that further yen weakness could lift underlying inflation and urged step-by-step tightening.
  • Tokyo CPI is watched as an early read on national price trends because the capital's data arrives first and often runs slightly higher than the countrywide figure.
  • Japan's national CPI for November is due about three weeks after the Tokyo release as broader data take longer to compile.